Correlation Between Huber Capital and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Huber Capital and Sterling Capital 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 Huber Capital and Sterling Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huber Capital Diversified and Sterling Capital Behavioral, you can compare the effects of market volatilities on Huber Capital and Sterling Capital 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 Huber Capital with a short position of Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huber Capital and Sterling Capital.
Diversification Opportunities for Huber Capital and Sterling Capital
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huber and Sterling is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Huber Capital Diversified and Sterling Capital Behavioral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Beh and Huber 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 Huber Capital Diversified are associated (or correlated) with Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Beh has no effect on the direction of Huber Capital i.e., Huber Capital and Sterling Capital go up and down completely randomly.
Pair Corralation between Huber Capital and Sterling Capital
Assuming the 90 days horizon Huber Capital Diversified is expected to generate 0.45 times more return on investment than Sterling Capital. However, Huber Capital Diversified is 2.21 times less risky than Sterling Capital. It trades about 0.04 of its potential returns per unit of risk. Sterling Capital Behavioral is currently generating about -0.22 per unit of risk. If you would invest 2,498 in Huber Capital Diversified on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Huber Capital Diversified or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Huber Capital Diversified vs. Sterling Capital Behavioral
Performance |
| Timeline |
| Huber Capital Diversified |
| Sterling Capital Beh |
Huber Capital and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huber Capital and Sterling Capital
The main advantage of trading using opposite Huber Capital and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huber Capital position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital's long position.| Huber Capital vs. Ppm High Yield | Huber Capital vs. Calvert High Yield | Huber Capital vs. Western Asset High | Huber Capital vs. Siit High Yield |
| Sterling Capital vs. Sterling Capital Equity | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |