Correlation Between Sterling Capital and Astor Longshort
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Astor Longshort 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 Astor Longshort 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 Astor Longshort Fund, you can compare the effects of market volatilities on Sterling Capital and Astor Longshort 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 Astor Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Astor Longshort.
Diversification Opportunities for Sterling Capital and Astor Longshort
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sterling and Astor is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Short and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Longshort 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 Astor Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Longshort has no effect on the direction of Sterling Capital i.e., Sterling Capital and Astor Longshort go up and down completely randomly.
Pair Corralation between Sterling Capital and Astor Longshort
Assuming the 90 days horizon Sterling Capital is expected to generate 2.16 times less return on investment than Astor Longshort. But when comparing it to its historical volatility, Sterling Capital Short is 2.67 times less risky than Astor Longshort. It trades about 0.17 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,251 in Astor Longshort Fund on September 12, 2024 and sell it today you would earn a total of 172.00 from holding Astor Longshort Fund or generate 13.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Short vs. Astor Longshort Fund
Performance |
| Timeline |
| Sterling Capital Short |
| Astor Longshort |
Sterling Capital and Astor Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Astor Longshort
The main advantage of trading using opposite Sterling Capital and Astor Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Astor Longshort 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 Astor Longshort will offset losses from the drop in Astor Longshort's long position.| Sterling Capital vs. Goldman Sachs Real | Sterling Capital vs. Guggenheim Risk Managed | Sterling Capital vs. Redwood Real Estate | Sterling Capital vs. Sa Real Estate |
| Astor Longshort vs. SCOR PK | Astor Longshort vs. Morningstar Unconstrained Allocation | Astor Longshort vs. Via Renewables | Astor Longshort vs. Bondbloxx ETF Trust |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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