Correlation Between Stone Harbor and Gabelli Utility
Can any of the company-specific risk be diversified away by investing in both Stone Harbor and Gabelli Utility 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 Stone Harbor and Gabelli Utility into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stone Harbor Emerging and Gabelli Utility Closed, you can compare the effects of market volatilities on Stone Harbor and Gabelli Utility 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 Stone Harbor with a short position of Gabelli Utility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Harbor and Gabelli Utility.
Diversification Opportunities for Stone Harbor and Gabelli Utility
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stone and Gabelli is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Stone Harbor Emerging and Gabelli Utility Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Utility Closed and Stone Harbor 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 Stone Harbor Emerging are associated (or correlated) with Gabelli Utility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Utility Closed has no effect on the direction of Stone Harbor i.e., Stone Harbor and Gabelli Utility go up and down completely randomly.
Pair Corralation between Stone Harbor and Gabelli Utility
Considering the 90-day investment horizon Stone Harbor Emerging is expected to generate 1.15 times more return on investment than Gabelli Utility. However, Stone Harbor is 1.15 times more volatile than Gabelli Utility Closed. It trades about 0.08 of its potential returns per unit of risk. Gabelli Utility Closed is currently generating about 0.01 per unit of risk. If you would invest 392.00 in Stone Harbor Emerging on September 12, 2024 and sell it today you would earn a total of 115.00 from holding Stone Harbor Emerging or generate 29.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stone Harbor Emerging vs. Gabelli Utility Closed
Performance |
| Timeline |
| Stone Harbor Emerging |
| Gabelli Utility Closed |
Stone Harbor and Gabelli Utility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stone Harbor and Gabelli Utility
The main advantage of trading using opposite Stone Harbor and Gabelli Utility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Harbor position performs unexpectedly, Gabelli Utility 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 Gabelli Utility will offset losses from the drop in Gabelli Utility's long position.| Stone Harbor vs. Oxford Lane Capital | Stone Harbor vs. Orchid Island Capital | Stone Harbor vs. Guggenheim Strategic Opportunities |
| Gabelli Utility vs. Oxford Lane Capital | Gabelli Utility vs. Orchid Island Capital | Gabelli Utility vs. Guggenheim Strategic Opportunities | Gabelli Utility vs. Stone Harbor Emerging |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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