Correlation Between Sterling Capital and Voya Global
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Voya Global 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 Voya Global 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 Voya Global Bond, you can compare the effects of market volatilities on Sterling Capital and Voya Global 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 Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Voya Global.
Diversification Opportunities for Sterling Capital and Voya Global
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between STERLING and Voya is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Short and Voya Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Bond 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 Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Bond has no effect on the direction of Sterling Capital i.e., Sterling Capital and Voya Global go up and down completely randomly.
Pair Corralation between Sterling Capital and Voya Global
Assuming the 90 days horizon Sterling Capital Short is expected to generate 0.2 times more return on investment than Voya Global. However, Sterling Capital Short is 4.89 times less risky than Voya Global. It trades about 0.06 of its potential returns per unit of risk. Voya Global Bond is currently generating about 0.0 per unit of risk. If you would invest 835.00 in Sterling Capital Short on September 4, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Short vs. Voya Global Bond
Performance |
| Timeline |
| Sterling Capital Short |
| Voya Global Bond |
Sterling Capital and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Voya Global
The main advantage of trading using opposite Sterling Capital and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Voya Global 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 Voya Global will offset losses from the drop in Voya Global's long position.| Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital South |
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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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