Correlation Between Acm Dynamic and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Acm Dynamic and Sterling Capital 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 Acm Dynamic and Sterling Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acm Dynamic Opportunity and Sterling Capital Stratton, you can compare the effects of market volatilities on Acm Dynamic and Sterling Capital 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 Acm Dynamic with a short position of Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acm Dynamic and Sterling Capital.
Diversification Opportunities for Acm Dynamic and Sterling Capital
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Acm and Sterling is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Acm Dynamic Opportunity and Sterling Capital Stratton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Stratton and Acm Dynamic 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 Acm Dynamic Opportunity are associated (or correlated) with Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Stratton has no effect on the direction of Acm Dynamic i.e., Acm Dynamic and Sterling Capital go up and down completely randomly.
Pair Corralation between Acm Dynamic and Sterling Capital
Assuming the 90 days horizon Acm Dynamic Opportunity is expected to generate 0.7 times more return on investment than Sterling Capital. However, Acm Dynamic Opportunity is 1.42 times less risky than Sterling Capital. It trades about 0.11 of its potential returns per unit of risk. Sterling Capital Stratton is currently generating about 0.06 per unit of risk. If you would invest 1,618 in Acm Dynamic Opportunity on August 30, 2024 and sell it today you would earn a total of 530.00 from holding Acm Dynamic Opportunity or generate 32.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acm Dynamic Opportunity vs. Sterling Capital Stratton
Performance |
| Timeline |
| Acm Dynamic Opportunity |
| Sterling Capital Stratton |
Acm Dynamic and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acm Dynamic and Sterling Capital
The main advantage of trading using opposite Acm Dynamic and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acm Dynamic position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital's long position.| Acm Dynamic vs. Goldman Sachs Inflation | Acm Dynamic vs. The Hartford Inflation | Acm Dynamic vs. Oklahoma College Savings | Acm Dynamic vs. Western Asset Inflation |
| Sterling Capital vs. Small Cap Equity | Sterling Capital vs. Ab Select Equity | Sterling Capital vs. Vanguard Equity Income | Sterling Capital vs. Fisher Fixed Income |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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