Correlation Between Sterling Capital and Oshidori International
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Oshidori International 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 Oshidori International 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 Oshidori International Holdings, you can compare the effects of market volatilities on Sterling Capital and Oshidori International 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 Oshidori International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Oshidori International.
Diversification Opportunities for Sterling Capital and Oshidori International
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sterling and Oshidori is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Total and Oshidori International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oshidori International 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 Oshidori International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oshidori International has no effect on the direction of Sterling Capital i.e., Sterling Capital and Oshidori International go up and down completely randomly.
Pair Corralation between Sterling Capital and Oshidori International
Assuming the 90 days horizon Sterling Capital is expected to generate 1205.54 times less return on investment than Oshidori International. But when comparing it to its historical volatility, Sterling Capital Total is 654.13 times less risky than Oshidori International. It trades about 0.12 of its potential returns per unit of risk. Oshidori International Holdings is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 0.07 in Oshidori International Holdings on September 1, 2024 and sell it today you would earn a total of 0.93 from holding Oshidori International Holdings or generate 1328.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sterling Capital Total vs. Oshidori International Holding
Performance |
| Timeline |
| Sterling Capital Total |
| Oshidori International |
Sterling Capital and Oshidori International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Oshidori International
The main advantage of trading using opposite Sterling Capital and Oshidori International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Oshidori International 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 Oshidori International will offset losses from the drop in Oshidori International's long position.| Sterling Capital vs. Sterling Capital Equity | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral |
| Oshidori International vs. Morgan Stanley | Oshidori International vs. Goldman Sachs Group | Oshidori International vs. HUMANA INC | Oshidori International vs. SCOR PK |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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