Correlation Between Sterling Capital and Thrivent High
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Thrivent High 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 Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Capital Total and Thrivent High Yield, you can compare the effects of market volatilities on Sterling Capital and Thrivent High 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 Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Thrivent High.
Diversification Opportunities for Sterling Capital and Thrivent High
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sterling and Thrivent is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Total and Thrivent High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent High Yield 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 Total are associated (or correlated) with Thrivent High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent High Yield has no effect on the direction of Sterling Capital i.e., Sterling Capital and Thrivent High go up and down completely randomly.
Pair Corralation between Sterling Capital and Thrivent High
Assuming the 90 days horizon Sterling Capital is expected to generate 2.17 times less return on investment than Thrivent High. In addition to that, Sterling Capital is 1.33 times more volatile than Thrivent High Yield. It trades about 0.04 of its total potential returns per unit of risk. Thrivent High Yield is currently generating about 0.11 per unit of volatility. If you would invest 363.00 in Thrivent High Yield on September 3, 2024 and sell it today you would earn a total of 63.00 from holding Thrivent High Yield or generate 17.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Total vs. Thrivent High Yield
Performance |
| Timeline |
| Sterling Capital Total |
| Thrivent High Yield |
Sterling Capital and Thrivent High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Thrivent High
The main advantage of trading using opposite Sterling Capital and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Thrivent High 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 Thrivent High will offset losses from the drop in Thrivent High's long position.| Sterling Capital vs. First Eagle Gold | Sterling Capital vs. Global Gold Fund | Sterling Capital vs. Sprott Gold Equity | Sterling Capital vs. Precious Metals And |
| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Income Fund | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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