Correlation Between Sterling Capital and Massmutual Retiresmart
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Massmutual Retiresmart 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 Massmutual Retiresmart 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 Massmutual Retiresmart 2025, you can compare the effects of market volatilities on Sterling Capital and Massmutual Retiresmart 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 Massmutual Retiresmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Massmutual Retiresmart.
Diversification Opportunities for Sterling Capital and Massmutual Retiresmart
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sterling and Massmutual is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Short and Massmutual Retiresmart 2025 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Retiresmart 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 Massmutual Retiresmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Retiresmart has no effect on the direction of Sterling Capital i.e., Sterling Capital and Massmutual Retiresmart go up and down completely randomly.
Pair Corralation between Sterling Capital and Massmutual Retiresmart
If you would invest 833.00 in Sterling Capital Short on November 27, 2024 and sell it today you would earn a total of 4.00 from holding Sterling Capital Short or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Short vs. Massmutual Retiresmart 2025
Performance |
| Timeline |
| Sterling Capital Short |
| Massmutual Retiresmart |
Sterling Capital and Massmutual Retiresmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Massmutual Retiresmart
The main advantage of trading using opposite Sterling Capital and Massmutual Retiresmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Massmutual Retiresmart 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 Massmutual Retiresmart will offset losses from the drop in Massmutual Retiresmart's long position.| Sterling Capital vs. World Precious Minerals | Sterling Capital vs. Global Gold Fund | Sterling Capital vs. Investment Managers Series | Sterling Capital vs. Deutsche Gold Precious |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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