Correlation Between Stone Harbor and Cushing Mlp

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

Diversification Opportunities for Stone Harbor and Cushing Mlp

-0.31

Correlation Coefficient

Stone Harbor  Cushing Mlp

Very good diversification

The 3 months correlation between Stone and Cushing is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Stone Harbor Emerging and Cushing Mlp Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cushing Mlp Total 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 Cushing Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cushing Mlp Total has no effect on the direction of Stone Harbor i.e., Stone Harbor and Cushing Mlp go up and down completely randomly.

Pair Corralation between Stone Harbor and Cushing Mlp

Considering the 90-day investment horizon Stone Harbor Emerging is expected to under-perform the Cushing Mlp. But the fund apears to be less risky and, when comparing its historical volatility, Stone Harbor Emerging is 1.45 times less risky than Cushing Mlp. The fund trades about -0.01 of its potential returns per unit of risk. The Cushing Mlp Total is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  3,988  in Cushing Mlp Total on August 31, 2024 and sell it today you would earn a total of  549.00  from holding Cushing Mlp Total or generate 13.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Stone Harbor Emerging  vs.  Cushing Mlp Total

Stone Harbor Emerging

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stone Harbor Emerging has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable fundamental indicators, Stone Harbor is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Cushing Mlp Total

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cushing Mlp Total are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly fragile basic indicators, Cushing Mlp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Stone Harbor and Cushing Mlp

The main advantage of trading using opposite Stone Harbor and Cushing Mlp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Harbor position performs unexpectedly, Cushing Mlp 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 Cushing Mlp will offset losses from the drop in Cushing Mlp's long position.

The idea behind Stone Harbor Emerging and Cushing Mlp Total 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.

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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.