Correlation Between Sterling Capital and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Emerging Markets 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 Emerging Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Capital Short and Emerging Markets Growth, you can compare the effects of market volatilities on Sterling Capital and Emerging Markets 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 Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Emerging Markets.
Diversification Opportunities for Sterling Capital and Emerging Markets
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between STERLING and Emerging is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Short and Emerging Markets Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Growth 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 Short are associated (or correlated) with Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Growth has no effect on the direction of Sterling Capital i.e., Sterling Capital and Emerging Markets go up and down completely randomly.
Pair Corralation between Sterling Capital and Emerging Markets
Assuming the 90 days horizon Sterling Capital Short is expected to generate 0.12 times more return on investment than Emerging Markets. However, Sterling Capital Short is 8.55 times less risky than Emerging Markets. It trades about 0.07 of its potential returns per unit of risk. Emerging Markets Growth is currently generating about -0.14 per unit of risk. If you would invest 835.00 in Sterling Capital Short on September 2, 2024 and sell it today you would earn a total of 1.00 from holding Sterling Capital Short or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Short vs. Emerging Markets Growth
Performance |
| Timeline |
| Sterling Capital Short |
| Emerging Markets Growth |
Sterling Capital and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Emerging Markets
The main advantage of trading using opposite Sterling Capital and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Sterling Capital vs. Sterling Capital Equity | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital South | Sterling Capital vs. Sterling Capital South |
| Emerging Markets vs. Scharf Fund Retail | Emerging Markets vs. Calamos Global Equity | Emerging Markets vs. The Gabelli Equity | Emerging Markets vs. Locorr Dynamic Equity |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |