Correlation Between Sterling Capital and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Angel Oak 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 Angel Oak 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 Angel Oak Ultrashort, you can compare the effects of market volatilities on Sterling Capital and Angel Oak 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 Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Angel Oak.
Diversification Opportunities for Sterling Capital and Angel Oak
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between STERLING and Angel is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Short and Angel Oak Ultrashort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Ultrashort 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 Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Ultrashort has no effect on the direction of Sterling Capital i.e., Sterling Capital and Angel Oak go up and down completely randomly.
Pair Corralation between Sterling Capital and Angel Oak
Assuming the 90 days horizon Sterling Capital is expected to generate 1.22 times less return on investment than Angel Oak. In addition to that, Sterling Capital is 1.39 times more volatile than Angel Oak Ultrashort. It trades about 0.14 of its total potential returns per unit of risk. Angel Oak Ultrashort is currently generating about 0.23 per unit of volatility. If you would invest 868.00 in Angel Oak Ultrashort on September 3, 2024 and sell it today you would earn a total of 115.00 from holding Angel Oak Ultrashort or generate 13.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Short vs. Angel Oak Ultrashort
Performance |
| Timeline |
| Sterling Capital Short |
| Angel Oak Ultrashort |
Sterling Capital and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Angel Oak
The main advantage of trading using opposite Sterling Capital and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Sterling Capital vs. SPACE | Sterling Capital vs. Bayview Acquisition Corp | Sterling Capital vs. Ampleforth | Sterling Capital vs. ionet |
| Angel Oak vs. Icon Financial Fund | Angel Oak vs. Blackrock Financial Institutions | Angel Oak vs. Mesirow Financial Small | Angel Oak vs. Goldman Sachs Financial |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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