Correlation Between Stone Harbor and Cornerstone Strategic

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

Diversification Opportunities for Stone Harbor and Cornerstone Strategic

0.0

Correlation Coefficient

Stone Harbor  Cornerstone Strategic

Pay attention - limited upside

The 3 months correlation between Stone and Cornerstone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stone Harbor Emerging and Cornerstone Strategic Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cornerstone Strategic 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 Cornerstone Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cornerstone Strategic has no effect on the direction of Stone Harbor i.e., Stone Harbor and Cornerstone Strategic go up and down completely randomly.

Pair Corralation between Stone Harbor and Cornerstone Strategic

If you would invest (100.00) in Stone Harbor Emerging on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Stone Harbor Emerging 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

Stone Harbor Emerging  vs.  Cornerstone Strategic Return

Stone Harbor Emerging

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stone Harbor Emerging has generated negative risk-adjusted returns adding no value to fund investors. Despite fairly strong fundamental indicators, Stone Harbor is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Cornerstone Strategic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cornerstone Strategic Return has generated negative risk-adjusted returns adding no value to fund investors. Despite unfluctuating performance in the last few months, the Fund's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the mutual fund stockholders.

Pair Trading with Stone Harbor and Cornerstone Strategic

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

The idea behind Stone Harbor Emerging and Cornerstone Strategic Return 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.