Correlation Between Sterling Capital and Artisan Small
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Artisan Small 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 Artisan Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Capital Behavioral and Artisan Small Cap, you can compare the effects of market volatilities on Sterling Capital and Artisan Small 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 Artisan Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Artisan Small.
Diversification Opportunities for Sterling Capital and Artisan Small
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sterling and Artisan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Behavioral and Artisan Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Small Cap 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 Behavioral are associated (or correlated) with Artisan Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Small Cap has no effect on the direction of Sterling Capital i.e., Sterling Capital and Artisan Small go up and down completely randomly.
Pair Corralation between Sterling Capital and Artisan Small
Assuming the 90 days horizon Sterling Capital Behavioral is expected to generate 0.59 times more return on investment than Artisan Small. However, Sterling Capital Behavioral is 1.69 times less risky than Artisan Small. It trades about 0.09 of its potential returns per unit of risk. Artisan Small Cap is currently generating about 0.05 per unit of risk. If you would invest 2,250 in Sterling Capital Behavioral on August 30, 2024 and sell it today you would earn a total of 970.00 from holding Sterling Capital Behavioral or generate 43.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Behavioral vs. Artisan Small Cap
Performance |
| Timeline |
| Sterling Capital Beh |
| Artisan Small Cap |
Sterling Capital and Artisan Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Artisan Small
The main advantage of trading using opposite Sterling Capital and Artisan Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Artisan Small 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 Artisan Small will offset losses from the drop in Artisan Small's long position.| Sterling Capital vs. Dodge Cox Stock | Sterling Capital vs. American Mutual Fund | Sterling Capital vs. American Funds American | Sterling Capital vs. American Funds American |
| Artisan Small vs. Artisan Global Opportunities | Artisan Small vs. Artisan Mid Cap | Artisan Small vs. Wasatch Ultra Growth | Artisan Small vs. Artisan International Value |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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