Correlation Between Stone Harbor and RiverNorthDoubleLine
Can any of the company-specific risk be diversified away by investing in both Stone Harbor and RiverNorthDoubleLine 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 RiverNorthDoubleLine 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 RiverNorthDoubleLine Strategic Opportunity, you can compare the effects of market volatilities on Stone Harbor and RiverNorthDoubleLine 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 RiverNorthDoubleLine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Harbor and RiverNorthDoubleLine.
Diversification Opportunities for Stone Harbor and RiverNorthDoubleLine
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stone and RiverNorthDoubleLine is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Stone Harbor Emerging and RiverNorthDoubleLine Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RiverNorthDoubleLine 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 RiverNorthDoubleLine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RiverNorthDoubleLine has no effect on the direction of Stone Harbor i.e., Stone Harbor and RiverNorthDoubleLine go up and down completely randomly.
Pair Corralation between Stone Harbor and RiverNorthDoubleLine
Considering the 90-day investment horizon Stone Harbor Emerging is expected to generate 2.06 times more return on investment than RiverNorthDoubleLine. However, Stone Harbor is 2.06 times more volatile than RiverNorthDoubleLine Strategic Opportunity. It trades about 0.05 of its potential returns per unit of risk. RiverNorthDoubleLine Strategic Opportunity is currently generating about -0.14 per unit of risk. If you would invest 497.00 in Stone Harbor Emerging on August 29, 2024 and sell it today you would earn a total of 6.00 from holding Stone Harbor Emerging or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stone Harbor Emerging vs. RiverNorthDoubleLine Strategic
Performance |
| Timeline |
| Stone Harbor Emerging |
| RiverNorthDoubleLine |
Stone Harbor and RiverNorthDoubleLine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stone Harbor and RiverNorthDoubleLine
The main advantage of trading using opposite Stone Harbor and RiverNorthDoubleLine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Harbor position performs unexpectedly, RiverNorthDoubleLine 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 RiverNorthDoubleLine will offset losses from the drop in RiverNorthDoubleLine's long position.| Stone Harbor vs. Gabelli Global Small | Stone Harbor vs. MFS Investment Grade | Stone Harbor vs. Eaton Vance National | Stone Harbor vs. GAMCO Natural Resources |
| RiverNorthDoubleLine vs. Eaton Vance National | RiverNorthDoubleLine vs. Invesco High Income | RiverNorthDoubleLine vs. Blackrock Muniholdings Ny | RiverNorthDoubleLine vs. Nuveen California Select |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |