Correlation Between Calvert Global and Stone Harbor
Can any of the company-specific risk be diversified away by investing in both Calvert Global 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 Calvert Global and Stone Harbor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Energy and Stone Harbor Emerging, you can compare the effects of market volatilities on Calvert Global 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 Calvert Global with a short position of Stone Harbor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Stone Harbor.
Diversification Opportunities for Calvert Global and Stone Harbor
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Calvert and Stone is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy 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 Calvert Global 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 Calvert Global Energy 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 Calvert Global i.e., Calvert Global and Stone Harbor go up and down completely randomly.
Pair Corralation between Calvert Global and Stone Harbor
Assuming the 90 days horizon Calvert Global Energy is expected to under-perform the Stone Harbor. In addition to that, Calvert Global is 2.1 times more volatile than Stone Harbor Emerging. It trades about -0.01 of its total potential returns per unit of risk. Stone Harbor Emerging is currently generating about 0.09 per unit of volatility. If you would invest 470.00 in Stone Harbor Emerging on September 12, 2024 and sell it today you would earn a total of 11.00 from holding Stone Harbor Emerging or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Calvert Global Energy vs. Stone Harbor Emerging
Performance |
| Timeline |
| Calvert Global Energy |
| Stone Harbor Emerging |
Calvert Global and Stone Harbor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Stone Harbor
The main advantage of trading using opposite Calvert Global and Stone Harbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global 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.| Calvert Global vs. Ab Global Risk | Calvert Global vs. Lgm Risk Managed | Calvert Global vs. Western Asset High | Calvert Global vs. Ab Global Risk |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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