Correlation Between Endo International and Stone Harbor
Can any of the company-specific risk be diversified away by investing in both Endo International 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 Endo International and Stone Harbor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endo International PLC and Stone Harbor Emerging, you can compare the effects of market volatilities on Endo International 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 Endo International with a short position of Stone Harbor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endo International and Stone Harbor.
Diversification Opportunities for Endo International and Stone Harbor
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Endo and Stone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Endo International PLC 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 Endo International 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 Endo International PLC 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 Endo International i.e., Endo International and Stone Harbor go up and down completely randomly.
Pair Corralation between Endo International and Stone Harbor
If you would invest (100.00) in Endo International PLC on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Endo International PLC or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Endo International PLC vs. Stone Harbor Emerging
Performance |
Timeline |
Endo International PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Stone Harbor Emerging |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Endo International and Stone Harbor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Endo International and Stone Harbor
The main advantage of trading using opposite Endo International and Stone Harbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endo International 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.Endo International vs. JetBlue Airways Corp | Endo International vs. United Airlines Holdings | Endo International vs. American Video Teleconferencing | Endo International vs. Sun Country Airlines |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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