Correlation Between Sterling Capital and Shelton Emerging
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Shelton Emerging 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 Shelton Emerging 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 Shelton Emerging Markets, you can compare the effects of market volatilities on Sterling Capital and Shelton Emerging 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 Shelton Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Shelton Emerging.
Diversification Opportunities for Sterling Capital and Shelton Emerging
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sterling and Shelton is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Short and Shelton Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Emerging Markets 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 Shelton Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Emerging Markets has no effect on the direction of Sterling Capital i.e., Sterling Capital and Shelton Emerging go up and down completely randomly.
Pair Corralation between Sterling Capital and Shelton Emerging
Assuming the 90 days horizon Sterling Capital Short is expected to generate 0.13 times more return on investment than Shelton Emerging. However, Sterling Capital Short is 7.86 times less risky than Shelton Emerging. It trades about 0.19 of its potential returns per unit of risk. Shelton Emerging Markets is currently generating about -0.02 per unit of risk. If you would invest 811.00 in Sterling Capital Short on September 1, 2024 and sell it today you would earn a total of 25.00 from holding Sterling Capital Short or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Sterling Capital Short vs. Shelton Emerging Markets
Performance |
| Timeline |
| Sterling Capital Short |
| Shelton Emerging Markets |
Sterling Capital and Shelton Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Shelton Emerging
The main advantage of trading using opposite Sterling Capital and Shelton Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Shelton Emerging 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 Shelton Emerging will offset losses from the drop in Shelton Emerging's long position.| Sterling Capital vs. Sterling Capital Equity | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital South | Sterling Capital vs. Sterling Capital South |
| Shelton Emerging vs. Shelton Emerging Markets | Shelton Emerging vs. California Tax Free Income | Shelton Emerging vs. Shelton Funds | Shelton Emerging vs. Nasdaq 100 Index Fund |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |