Correlation Between Oil Gas and Stone Harbor
Can any of the company-specific risk be diversified away by investing in both Oil Gas and Stone Harbor 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 Oil Gas and Stone Harbor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oil Gas Ultrasector and Stone Harbor Strategic, you can compare the effects of market volatilities on Oil Gas and Stone Harbor 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 Oil Gas with a short position of Stone Harbor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oil Gas and Stone Harbor.
Diversification Opportunities for Oil Gas and Stone Harbor
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oil and Stone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oil Gas Ultrasector and Stone Harbor Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Harbor Strategic and Oil Gas 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 Oil Gas Ultrasector are associated (or correlated) with Stone Harbor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Harbor Strategic has no effect on the direction of Oil Gas i.e., Oil Gas and Stone Harbor go up and down completely randomly.
Pair Corralation between Oil Gas and Stone Harbor
If you would invest 0.00 in Stone Harbor Strategic on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Stone Harbor Strategic or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Oil Gas Ultrasector vs. Stone Harbor Strategic
Performance |
| Timeline |
| Oil Gas Ultrasector |
| Stone Harbor Strategic |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oil Gas and Stone Harbor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oil Gas and Stone Harbor
The main advantage of trading using opposite Oil Gas and Stone Harbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oil Gas position performs unexpectedly, Stone Harbor 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 Stone Harbor will offset losses from the drop in Stone Harbor's long position.| Oil Gas vs. Oil Gas Ultrasector | Oil Gas vs. Ultramid Cap Profund Ultramid Cap | Oil Gas vs. Precious Metals Ultrasector | Oil Gas vs. Real Estate Ultrasector |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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