Correlation Between Blrc Sgy and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Blrc Sgy 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 Blrc Sgy and Sterling Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blrc Sgy Mnp and Sterling Capital North, you can compare the effects of market volatilities on Blrc Sgy 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 Blrc Sgy with a short position of Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blrc Sgy and Sterling Capital.
Diversification Opportunities for Blrc Sgy and Sterling Capital
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blrc and Sterling is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Blrc Sgy Mnp and Sterling Capital North in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital North and Blrc Sgy 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 Blrc Sgy Mnp 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 North has no effect on the direction of Blrc Sgy i.e., Blrc Sgy and Sterling Capital go up and down completely randomly.
Pair Corralation between Blrc Sgy and Sterling Capital
Assuming the 90 days horizon Blrc Sgy Mnp is expected to generate 1.9 times more return on investment than Sterling Capital. However, Blrc Sgy is 1.9 times more volatile than Sterling Capital North. It trades about 0.39 of its potential returns per unit of risk. Sterling Capital North is currently generating about 0.46 per unit of risk. If you would invest 1,056 in Blrc Sgy Mnp on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Blrc Sgy Mnp or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blrc Sgy Mnp vs. Sterling Capital North
Performance |
| Timeline |
| Blrc Sgy Mnp |
| Sterling Capital North |
Blrc Sgy and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blrc Sgy and Sterling Capital
The main advantage of trading using opposite Blrc Sgy and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blrc Sgy 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.| Blrc Sgy vs. Leggmason Partners Institutional | Blrc Sgy vs. Balanced Fund Investor | Blrc Sgy vs. T Rowe Price | Blrc Sgy vs. Acm Dynamic Opportunity |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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