Correlation Between Sterling Capital and Siit High
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Siit High 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 Sterling Capital and Siit High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Capital Intermediate and Siit High Yield, you can compare the effects of market volatilities on Sterling Capital and Siit High 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 Sterling Capital with a short position of Siit High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Siit High.
Diversification Opportunities for Sterling Capital and Siit High
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sterling and Siit is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Intermediate and Siit High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit High Yield and Sterling Capital 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 Sterling Capital Intermediate are associated (or correlated) with Siit High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit High Yield has no effect on the direction of Sterling Capital i.e., Sterling Capital and Siit High go up and down completely randomly.
Pair Corralation between Sterling Capital and Siit High
Assuming the 90 days horizon Sterling Capital is expected to generate 1.87 times less return on investment than Siit High. But when comparing it to its historical volatility, Sterling Capital Intermediate is 1.14 times less risky than Siit High. It trades about 0.09 of its potential returns per unit of risk. Siit High Yield is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 638.00 in Siit High Yield on September 14, 2024 and sell it today you would earn a total of 80.00 from holding Siit High Yield or generate 12.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Intermediate vs. Siit High Yield
Performance |
| Timeline |
| Sterling Capital Int |
| Siit High Yield |
Sterling Capital and Siit High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Siit High
The main advantage of trading using opposite Sterling Capital and Siit High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Siit High 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 Siit High will offset losses from the drop in Siit High's long position.| Sterling Capital vs. Siit High Yield | Sterling Capital vs. City National Rochdale | Sterling Capital vs. Neuberger Berman Income | Sterling Capital vs. Gmo High Yield |
| Siit High vs. Artisan High Income | Siit High vs. Sit Emerging Markets | Siit High vs. Sit International Equity | Siit High vs. Stet Intermediate Term |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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