Correlation Between Stone Harbor and Oil Gas
Can any of the company-specific risk be diversified away by investing in both Stone Harbor and Oil Gas 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 Oil Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stone Harbor Strategic and Oil Gas Ultrasector, you can compare the effects of market volatilities on Stone Harbor and Oil Gas 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 Oil Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Harbor and Oil Gas.
Diversification Opportunities for Stone Harbor and Oil Gas
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Stone and Oil is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Stone Harbor Strategic and Oil Gas Ultrasector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oil Gas Ultrasector 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 Strategic are associated (or correlated) with Oil Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oil Gas Ultrasector has no effect on the direction of Stone Harbor i.e., Stone Harbor and Oil Gas go up and down completely randomly.
Pair Corralation between Stone Harbor and Oil Gas
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 | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Stone Harbor Strategic vs. Oil Gas Ultrasector
Performance |
| Timeline |
| Stone Harbor Strategic |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oil Gas Ultrasector |
Stone Harbor and Oil Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stone Harbor and Oil Gas
The main advantage of trading using opposite Stone Harbor and Oil Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Harbor position performs unexpectedly, Oil Gas 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 Oil Gas will offset losses from the drop in Oil Gas' long position.| Stone Harbor vs. Boston Partners Longshort | Stone Harbor vs. Touchstone Ultra Short | Stone Harbor vs. Easterly Snow Longshort | Stone Harbor vs. Franklin Federal Limited Term |
| 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 |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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