Correlation Between Arrow Managed and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Arrow Managed 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 Arrow Managed and Sterling Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Managed Futures and Sterling Capital Behavioral, you can compare the effects of market volatilities on Arrow Managed 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 Arrow Managed with a short position of Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Managed and Sterling Capital.
Diversification Opportunities for Arrow Managed and Sterling Capital
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arrow and Sterling is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Managed Futures 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 Arrow Managed 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 Arrow Managed Futures 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 Arrow Managed i.e., Arrow Managed and Sterling Capital go up and down completely randomly.
Pair Corralation between Arrow Managed and Sterling Capital
Assuming the 90 days horizon Arrow Managed is expected to generate 4.71 times less return on investment than Sterling Capital. In addition to that, Arrow Managed is 1.94 times more volatile than Sterling Capital Behavioral. It trades about 0.01 of its total potential returns per unit of risk. Sterling Capital Behavioral is currently generating about 0.09 per unit of volatility. If you would invest 2,203 in Sterling Capital Behavioral on September 3, 2024 and sell it today you would earn a total of 866.00 from holding Sterling Capital Behavioral or generate 39.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arrow Managed Futures vs. Sterling Capital Behavioral
Performance |
| Timeline |
| Arrow Managed Futures |
| Sterling Capital Beh |
Arrow Managed and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Managed and Sterling Capital
The main advantage of trading using opposite Arrow Managed and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Managed 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.| Arrow Managed vs. Transamerica Funds | Arrow Managed vs. T Rowe Price | Arrow Managed vs. Cs 607 Tax | Arrow Managed vs. Intermediate Term Tax Free Bond |
| Sterling Capital vs. Gabelli Gold Fund | Sterling Capital vs. Goldman Sachs Clean | Sterling Capital vs. Gold And Precious | Sterling Capital vs. First Eagle Gold |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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