Correlation Between Sterling Capital and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Amg Managers 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 Amg Managers 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 Amg Managers Centersquare, you can compare the effects of market volatilities on Sterling Capital and Amg Managers 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 Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Amg Managers.
Diversification Opportunities for Sterling Capital and Amg Managers
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sterling and Amg is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Short and Amg Managers Centersquare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Centersquare 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 Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Centersquare has no effect on the direction of Sterling Capital i.e., Sterling Capital and Amg Managers go up and down completely randomly.
Pair Corralation between Sterling Capital and Amg Managers
Assuming the 90 days horizon Sterling Capital Short is expected to generate 0.09 times more return on investment than Amg Managers. However, Sterling Capital Short is 10.94 times less risky than Amg Managers. It trades about 0.06 of its potential returns per unit of risk. Amg Managers Centersquare is currently generating about 0.0 per unit of risk. If you would invest 833.00 in Sterling Capital Short on August 26, 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Short vs. Amg Managers Centersquare
Performance |
| Timeline |
| Sterling Capital Short |
| Amg Managers Centersquare |
Sterling Capital and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Amg Managers
The main advantage of trading using opposite Sterling Capital and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.| Sterling Capital vs. Amg Managers Centersquare | Sterling Capital vs. Forum Real Estate | Sterling Capital vs. Tiaa Cref Real Estate | Sterling Capital vs. Prudential Real Estate |
| Amg Managers vs. Pace High Yield | Amg Managers vs. Ppm High Yield | Amg Managers vs. Multi Manager High Yield | Amg Managers vs. Pimco 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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