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
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stone and RiverNorthDoubleLine is 0.0. 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 2.54 times more return on investment than RiverNorthDoubleLine. However, Stone Harbor is 2.54 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 0.07 per unit of risk. If you would invest 504.00 in Stone Harbor Emerging on November 2, 2024 and sell it today you would earn a total of 43.00 from holding Stone Harbor Emerging or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.72% |
| Values | Daily Returns |
Stone Harbor Emerging vs. RiverNorthDoubleLine Strategic
Performance |
| Timeline |
| Stone Harbor Emerging |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| 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. Aberdeen Global IF | Stone Harbor vs. Clough Global Opportunities | Stone Harbor vs. RiverNorthDoubleLine Strategic Opportunity | Stone Harbor vs. Cornerstone Strategic Return |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |