Correlation Between Sterling Capital and Invesco Municipal
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Invesco Municipal 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 Invesco Municipal 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 Invesco Municipal Income, you can compare the effects of market volatilities on Sterling Capital and Invesco Municipal 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 Invesco Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Invesco Municipal.
Diversification Opportunities for Sterling Capital and Invesco Municipal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sterling and Invesco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Short and Invesco Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Municipal Income 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 Invesco Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Municipal Income has no effect on the direction of Sterling Capital i.e., Sterling Capital and Invesco Municipal go up and down completely randomly.
Pair Corralation between Sterling Capital and Invesco Municipal
If you would invest 767.00 in Sterling Capital Short on September 12, 2024 and sell it today you would earn a total of 70.00 from holding Sterling Capital Short or generate 9.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sterling Capital Short vs. Invesco Municipal Income
Performance |
| Timeline |
| Sterling Capital Short |
| Invesco Municipal Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sterling Capital and Invesco Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Invesco Municipal
The main advantage of trading using opposite Sterling Capital and Invesco Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Invesco Municipal 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 Invesco Municipal will offset losses from the drop in Invesco Municipal'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 |
| Invesco Municipal vs. Ep Emerging Markets | Invesco Municipal vs. Barings Emerging Markets | Invesco Municipal vs. Eagle Mlp Strategy | Invesco Municipal vs. Pace International Emerging |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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