Correlation Between Sterling Capital and Ambrus Core
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Ambrus Core 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 Ambrus Core 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 Ambrus Core Bond, you can compare the effects of market volatilities on Sterling Capital and Ambrus Core 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 Ambrus Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Ambrus Core.
Diversification Opportunities for Sterling Capital and Ambrus Core
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sterling and Ambrus is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Short and Ambrus Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambrus Core Bond 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 Ambrus Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambrus Core Bond has no effect on the direction of Sterling Capital i.e., Sterling Capital and Ambrus Core go up and down completely randomly.
Pair Corralation between Sterling Capital and Ambrus Core
Assuming the 90 days horizon Sterling Capital is expected to generate 1.24 times less return on investment than Ambrus Core. But when comparing it to its historical volatility, Sterling Capital Short is 1.63 times less risky than Ambrus Core. It trades about 0.18 of its potential returns per unit of risk. Ambrus Core Bond is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 917.00 in Ambrus Core Bond on September 1, 2024 and sell it today you would earn a total of 80.00 from holding Ambrus Core Bond or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Short vs. Ambrus Core Bond
Performance |
| Timeline |
| Sterling Capital Short |
| Ambrus Core Bond |
Sterling Capital and Ambrus Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Ambrus Core
The main advantage of trading using opposite Sterling Capital and Ambrus Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Ambrus Core 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 Ambrus Core will offset losses from the drop in Ambrus Core'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 |
| Ambrus Core vs. Harbor Diversified International | Ambrus Core vs. Adams Diversified Equity | Ambrus Core vs. Western Asset Diversified | Ambrus Core vs. Fidelity Advisor Diversified |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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