Correlation Between Sterling Capital and Harbor Convertible
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Harbor Convertible 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 Harbor Convertible 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 Harbor Vertible Securities, you can compare the effects of market volatilities on Sterling Capital and Harbor Convertible 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 Harbor Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Harbor Convertible.
Diversification Opportunities for Sterling Capital and Harbor Convertible
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sterling and Harbor is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Short and Harbor Vertible Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Vertible Secu 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 Harbor Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Vertible Secu has no effect on the direction of Sterling Capital i.e., Sterling Capital and Harbor Convertible go up and down completely randomly.
Pair Corralation between Sterling Capital and Harbor Convertible
Assuming the 90 days horizon Sterling Capital is expected to generate 64.68 times less return on investment than Harbor Convertible. But when comparing it to its historical volatility, Sterling Capital Short is 5.35 times less risky than Harbor Convertible. It trades about 0.06 of its potential returns per unit of risk. Harbor Vertible Securities is currently generating about 0.71 of returns per unit of risk over similar time horizon. If you would invest 1,124 in Harbor Vertible Securities on September 2, 2024 and sell it today you would earn a total of 90.00 from holding Harbor Vertible Securities or generate 8.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Short vs. Harbor Vertible Securities
Performance |
| Timeline |
| Sterling Capital Short |
| Harbor Vertible Secu |
Sterling Capital and Harbor Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Harbor Convertible
The main advantage of trading using opposite Sterling Capital and Harbor Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Harbor Convertible 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 Harbor Convertible will offset losses from the drop in Harbor Convertible's long position.| Sterling Capital vs. Rationalpier 88 Convertible | Sterling Capital vs. Harbor Vertible Securities | Sterling Capital vs. Gabelli Convertible And | Sterling Capital vs. Columbia Vertible Securities |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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