Correlation Between Stone Harbor and Growth Fund

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Can any of the company-specific risk be diversified away by investing in both Stone Harbor and Growth Fund 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 Growth Fund 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 Growth Fund Of, you can compare the effects of market volatilities on Stone Harbor and Growth Fund 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 Growth Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Harbor and Growth Fund.

Diversification Opportunities for Stone Harbor and Growth Fund

0.07
  Correlation Coefficient

Significant diversification

The 3 months correlation between Stone and Growth is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Stone Harbor Emerging and Growth Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Fund 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 Growth Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Fund has no effect on the direction of Stone Harbor i.e., Stone Harbor and Growth Fund go up and down completely randomly.

Pair Corralation between Stone Harbor and Growth Fund

If you would invest  508.00  in Stone Harbor Emerging on January 26, 2024 and sell it today you would earn a total of  0.00  from holding Stone Harbor Emerging or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy4.76%
ValuesDaily Returns

Stone Harbor Emerging  vs.  Growth Fund Of

 Performance 
       Timeline  
Stone Harbor Emerging 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Stone Harbor Emerging has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Stone Harbor is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Growth Fund 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Growth Fund Of are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Growth Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Stone Harbor and Growth Fund Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Stone Harbor and Growth Fund

The main advantage of trading using opposite Stone Harbor and Growth Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Harbor position performs unexpectedly, Growth Fund 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 Growth Fund will offset losses from the drop in Growth Fund's long position.
The idea behind Stone Harbor Emerging and Growth Fund Of pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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