Correlation Between Mutual Of and Stone Harbor
Can any of the company-specific risk be diversified away by investing in both Mutual Of 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 Mutual Of and Stone Harbor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mutual Of America and Stone Harbor Emerging, you can compare the effects of market volatilities on Mutual Of 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 Mutual Of with a short position of Stone Harbor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mutual Of and Stone Harbor.
Diversification Opportunities for Mutual Of and Stone Harbor
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mutual and Stone is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Mutual Of America and Stone Harbor Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Harbor Emerging and Mutual Of 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 Mutual Of America 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 Emerging has no effect on the direction of Mutual Of i.e., Mutual Of and Stone Harbor go up and down completely randomly.
Pair Corralation between Mutual Of and Stone Harbor
Assuming the 90 days horizon Mutual Of America is expected to generate 5.03 times more return on investment than Stone Harbor. However, Mutual Of is 5.03 times more volatile than Stone Harbor Emerging. It trades about 0.28 of its potential returns per unit of risk. Stone Harbor Emerging is currently generating about 0.09 per unit of risk. If you would invest 1,493 in Mutual Of America on September 1, 2024 and sell it today you would earn a total of 150.00 from holding Mutual Of America or generate 10.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mutual Of America vs. Stone Harbor Emerging
Performance |
| Timeline |
| Mutual Of America |
| Stone Harbor Emerging |
Mutual Of and Stone Harbor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mutual Of and Stone Harbor
The main advantage of trading using opposite Mutual Of and Stone Harbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mutual Of 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.| Mutual Of vs. Gamco Global Telecommunications | Mutual Of vs. Bbh Intermediate Municipal | Mutual Of vs. Alliancebernstein National Municipal | Mutual Of vs. T Rowe Price |
| Stone Harbor vs. Mutual Of America | Stone Harbor vs. Fpa Queens Road | Stone Harbor vs. Mid Cap Value Profund | Stone Harbor vs. Ultramid Cap Profund Ultramid Cap |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |