Correlation Between Sterling Capital and Siit Large
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Siit Large 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 Large 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 Siit Large Cap, you can compare the effects of market volatilities on Sterling Capital and Siit Large 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 Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Siit Large.
Diversification Opportunities for Sterling Capital and Siit Large
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sterling and Siit is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Short and Siit Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Large 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 Short are associated (or correlated) with Siit Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Large Cap has no effect on the direction of Sterling Capital i.e., Sterling Capital and Siit Large go up and down completely randomly.
Pair Corralation between Sterling Capital and Siit Large
Assuming the 90 days horizon Sterling Capital is expected to generate 5.6 times less return on investment than Siit Large. But when comparing it to its historical volatility, Sterling Capital Short is 5.8 times less risky than Siit Large. It trades about 0.15 of its potential returns per unit of risk. Siit Large Cap is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,390 in Siit Large Cap on September 3, 2024 and sell it today you would earn a total of 355.00 from holding Siit Large Cap or generate 25.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Short vs. Siit Large Cap
Performance |
| Timeline |
| Sterling Capital Short |
| Siit Large Cap |
Sterling Capital and Siit Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Siit Large
The main advantage of trading using opposite Sterling Capital and Siit Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Siit Large 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 Large will offset losses from the drop in Siit Large's long position.| Sterling Capital vs. Bbh Intermediate Municipal | Sterling Capital vs. Federated Pennsylvania Municipal | Sterling Capital vs. Limited Term Tax | Sterling Capital vs. Ab Bond Inflation |
| Siit Large vs. Blrc Sgy Mnp | Siit Large vs. Angel Oak Financial | Siit Large vs. Limited Term Tax | Siit Large vs. Ambrus Core Bond |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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