Correlation Between CBH and Stone Harbor
Can any of the company-specific risk be diversified away by investing in both CBH and Stone Harbor 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 CBH and Stone Harbor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and Stone Harbor Emerging, you can compare the effects of market volatilities on CBH and Stone Harbor 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 CBH with a short position of Stone Harbor. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and Stone Harbor.
Diversification Opportunities for CBH and Stone Harbor
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between CBH and Stone is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding CBH and Stone Harbor Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Harbor Emerging and CBH 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 CBH are associated (or correlated) with Stone Harbor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Harbor Emerging has no effect on the direction of CBH i.e., CBH and Stone Harbor go up and down completely randomly.
Pair Corralation between CBH and Stone Harbor
Considering the 90-day investment horizon CBH is expected to generate 2.88 times more return on investment than Stone Harbor. However, CBH is 2.88 times more volatile than Stone Harbor Emerging. It trades about 0.06 of its potential returns per unit of risk. Stone Harbor Emerging is currently generating about 0.05 per unit of risk. If you would invest 837.00 in CBH on November 2, 2024 and sell it today you would earn a total of 958.00 from holding CBH or generate 114.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 79.15% |
| Values | Daily Returns |
CBH vs. Stone Harbor Emerging
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Stone Harbor Emerging |
CBH and Stone Harbor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBH and Stone Harbor
The main advantage of trading using opposite CBH and Stone Harbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH position performs unexpectedly, Stone Harbor 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 Stone Harbor will offset losses from the drop in Stone Harbor's long position.| CBH vs. Eaton Vance National | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select | CBH vs. MFS Investment Grade |
| Stone Harbor vs. Virtus Global Multi | Stone Harbor vs. Aberdeen Global IF | Stone Harbor vs. Cushing Mlp Total | Stone Harbor vs. Aberdeen Asia Pacific If |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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