Correlation Between Stone Harbor and CBH
Can any of the company-specific risk be diversified away by investing in both Stone Harbor and CBH 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 CBH 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 CBH, you can compare the effects of market volatilities on Stone Harbor and CBH 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 CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Harbor and CBH.
Diversification Opportunities for Stone Harbor and CBH
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Stone and CBH is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Stone Harbor Emerging and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH 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 CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of Stone Harbor i.e., Stone Harbor and CBH go up and down completely randomly.
Pair Corralation between Stone Harbor and CBH
If you would invest 919.00 in CBH on October 21, 2024 and sell it today you would earn a total of 0.00 from holding CBH or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stone Harbor Emerging vs. CBH
Performance |
| Timeline |
| Stone Harbor Emerging |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Stone Harbor and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stone Harbor and CBH
The main advantage of trading using opposite Stone Harbor and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Harbor position performs unexpectedly, CBH 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 CBH will offset losses from the drop in CBH's long position.| Stone Harbor vs. Aberdeen Global IF | Stone Harbor vs. Clough Global Opportunities | Stone Harbor vs. RiverNorthDoubleLine Strategic Opportunity | Stone Harbor vs. Cornerstone Strategic Return |
| CBH vs. Eaton Vance National | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select | CBH vs. MFS Investment Grade |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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