Correlation Between Stone Harbor and Financial
Can any of the company-specific risk be diversified away by investing in both Stone Harbor and Financial 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 Financial 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 Financial 15 Split, you can compare the effects of market volatilities on Stone Harbor and Financial 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 Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Harbor and Financial.
Diversification Opportunities for Stone Harbor and Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stone and Financial is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stone Harbor Emerging and Financial 15 Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financial 15 Split 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 Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financial 15 Split has no effect on the direction of Stone Harbor i.e., Stone Harbor and Financial go up and down completely randomly.
Pair Corralation between Stone Harbor and Financial
Considering the 90-day investment horizon Stone Harbor is expected to generate 6.92 times less return on investment than Financial. But when comparing it to its historical volatility, Stone Harbor Emerging is 5.56 times less risky than Financial. It trades about 0.05 of its potential returns per unit of risk. Financial 15 Split is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 523.00 in Financial 15 Split on November 2, 2024 and sell it today you would earn a total of 142.00 from holding Financial 15 Split or generate 27.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 33.94% |
| Values | Daily Returns |
Stone Harbor Emerging vs. Financial 15 Split
Performance |
| Timeline |
| Stone Harbor Emerging |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Financial 15 Split |
Stone Harbor and Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stone Harbor and Financial
The main advantage of trading using opposite Stone Harbor and Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Harbor position performs unexpectedly, Financial 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 Financial will offset losses from the drop in Financial'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 |
| Financial vs. SEI Investments | Financial vs. Oxford Lane Capital | Financial vs. Blackstone Group | Financial vs. North American Financial |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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