Correlation Between Sterling Capital and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Astor Long/short 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 Astor Long/short 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 Astor Longshort Fund, you can compare the effects of market volatilities on Sterling Capital and Astor Long/short 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 Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Astor Long/short.
Diversification Opportunities for Sterling Capital and Astor Long/short
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sterling and Astor is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Short and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Long/short 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 Astor Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Long/short has no effect on the direction of Sterling Capital i.e., Sterling Capital and Astor Long/short go up and down completely randomly.
Pair Corralation between Sterling Capital and Astor Long/short
Assuming the 90 days horizon Sterling Capital Short is expected to generate 0.29 times more return on investment than Astor Long/short. However, Sterling Capital Short is 3.46 times less risky than Astor Long/short. It trades about 0.24 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about -0.12 per unit of risk. If you would invest 833.00 in Sterling Capital Short on December 1, 2024 and sell it today you would earn a total of 5.00 from holding Sterling Capital Short or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Short vs. Astor Longshort Fund
Performance |
| Timeline |
| Sterling Capital Short |
| Astor Long/short |
Sterling Capital and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Astor Long/short
The main advantage of trading using opposite Sterling Capital and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Astor Long/short 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 Astor Long/short will offset losses from the drop in Astor Long/short's long position.| Sterling Capital vs. T Rowe Price | Sterling Capital vs. John Hancock Money | Sterling Capital vs. Tiaa Cref Funds | Sterling Capital vs. Jpmorgan Trust I |
| Astor Long/short vs. Tekla Healthcare Investors | Astor Long/short vs. Hartford Healthcare Hls | Astor Long/short vs. Deutsche Health And | Astor Long/short vs. Eaton Vance Worldwide |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |