Correlation Between Spectrum International and Harbor Large

Can any of the company-specific risk be diversified away by investing in both Spectrum International and Harbor Large at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Spectrum International and Harbor Large into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Spectrum International Fund and Harbor Large Cap, you can compare the effects of market volatilities on Spectrum International and Harbor Large and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Spectrum International with a short position of Harbor Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spectrum International and Harbor Large.

Diversification Opportunities for Spectrum International and Harbor Large

0.23

Correlation Coefficient

Spectrum International  Harbor Large

Modest diversification

The 3 months correlation between Spectrum and Harbor is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Spectrum International Fund and Harbor Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Large Cap and Spectrum International is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Spectrum International Fund are associated (or correlated) with Harbor Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Large Cap has no effect on the direction of Spectrum International i.e., Spectrum International and Harbor Large go up and down completely randomly.

Pair Corralation between Spectrum International and Harbor Large

Assuming the 90 days horizon Spectrum International Fund is expected to generate 0.96 times more return on investment than Harbor Large. However, Spectrum International Fund is 1.04 times less risky than Harbor Large. It trades about -0.02 of its potential returns per unit of risk. Harbor Large Cap is currently generating about -0.13 per unit of risk. If you would invest  1,795  in Spectrum International Fund on August 5, 2025 and sell it today you would lose (8.00) from holding Spectrum International Fund or give up 0.45% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Spectrum International Fund  vs.  Harbor Large Cap

Spectrum International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Spectrum International Fund are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Spectrum International may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Harbor Large Cap

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Harbor Large Cap are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Harbor Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Spectrum International and Harbor Large

The main advantage of trading using opposite Spectrum International and Harbor Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spectrum International position performs unexpectedly, Harbor Large can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Harbor Large will offset losses from the drop in Harbor Large's long position.

The idea behind Spectrum International Fund and Harbor Large Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.