Correlation Between Sterling Capital and The Hartford
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and The Hartford 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 The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Capital Intermediate and The Hartford Equity, you can compare the effects of market volatilities on Sterling Capital and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and The Hartford.
Diversification Opportunities for Sterling Capital and The Hartford
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sterling and The is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Intermediate and The Hartford Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Equity 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 Intermediate are associated (or correlated) with The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Equity has no effect on the direction of Sterling Capital i.e., Sterling Capital and The Hartford go up and down completely randomly.
Pair Corralation between Sterling Capital and The Hartford
Assuming the 90 days horizon Sterling Capital Intermediate is expected to generate 0.55 times more return on investment than The Hartford. However, Sterling Capital Intermediate is 1.82 times less risky than The Hartford. It trades about 0.23 of its potential returns per unit of risk. The Hartford Equity is currently generating about -0.01 per unit of risk. If you would invest 858.00 in Sterling Capital Intermediate on November 28, 2024 and sell it today you would earn a total of 11.00 from holding Sterling Capital Intermediate or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Intermediate vs. The Hartford Equity
Performance |
| Timeline |
| Sterling Capital Int |
| Hartford Equity |
Sterling Capital and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and The Hartford
The main advantage of trading using opposite Sterling Capital and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Sterling Capital vs. Ambrus Core Bond | Sterling Capital vs. T Rowe Price | Sterling Capital vs. Doubleline Emerging Markets | Sterling Capital vs. Barings Active Short |
| The Hartford vs. The Hartford Dividend | The Hartford vs. The Hartford Total | The Hartford vs. The Hartford International | The Hartford vs. The Hartford Midcap |
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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