Correlation Between Sterling Capital and Blackrock Advantage
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Blackrock Advantage 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 Blackrock Advantage 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 Blackrock Advantage Total, you can compare the effects of market volatilities on Sterling Capital and Blackrock Advantage 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 Blackrock Advantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Blackrock Advantage.
Diversification Opportunities for Sterling Capital and Blackrock Advantage
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sterling and Blackrock is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Short and Blackrock Advantage Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Advantage Total 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 Blackrock Advantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Advantage Total has no effect on the direction of Sterling Capital i.e., Sterling Capital and Blackrock Advantage go up and down completely randomly.
Pair Corralation between Sterling Capital and Blackrock Advantage
Assuming the 90 days horizon Sterling Capital is expected to generate 23.48 times less return on investment than Blackrock Advantage. But when comparing it to its historical volatility, Sterling Capital Short is 13.05 times less risky than Blackrock Advantage. It trades about 0.09 of its potential returns per unit of risk. Blackrock Advantage Total is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,995 in Blackrock Advantage Total on November 7, 2024 and sell it today you would earn a total of 88.00 from holding Blackrock Advantage Total or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Sterling Capital Short vs. Blackrock Advantage Total
Performance |
| Timeline |
| Sterling Capital Short |
| Blackrock Advantage Total |
Sterling Capital and Blackrock Advantage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Blackrock Advantage
The main advantage of trading using opposite Sterling Capital and Blackrock Advantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Blackrock Advantage 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 Blackrock Advantage will offset losses from the drop in Blackrock Advantage's long position.| Sterling Capital vs. Gamco Natural Resources | Sterling Capital vs. Blackrock All Cap Energy | Sterling Capital vs. Energy Services Fund | Sterling Capital vs. Goehring Rozencwajg Resources |
| Blackrock Advantage vs. Blackrock Pa Muni | Blackrock Advantage vs. Managed Account Series | Blackrock Advantage vs. Blackrock Hi Yld | Blackrock Advantage vs. Blackrock High Yield |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |