Correlation Between Mid-cap Growth and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Mid-cap Growth 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 Mid-cap Growth and Sterling Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap Growth Profund and Sterling Capital Ultra, you can compare the effects of market volatilities on Mid-cap Growth 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 Mid-cap Growth with a short position of Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid-cap Growth and Sterling Capital.
Diversification Opportunities for Mid-cap Growth and Sterling Capital
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mid-cap and Sterling is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth Profund and Sterling Capital Ultra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Ultra and Mid-cap Growth 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 Mid Cap Growth Profund 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 Ultra has no effect on the direction of Mid-cap Growth i.e., Mid-cap Growth and Sterling Capital go up and down completely randomly.
Pair Corralation between Mid-cap Growth and Sterling Capital
Assuming the 90 days horizon Mid Cap Growth Profund is expected to generate 13.41 times more return on investment than Sterling Capital. However, Mid-cap Growth is 13.41 times more volatile than Sterling Capital Ultra. It trades about 0.02 of its potential returns per unit of risk. Sterling Capital Ultra is currently generating about 0.24 per unit of risk. If you would invest 8,396 in Mid Cap Growth Profund on January 16, 2025 and sell it today you would earn a total of 752.00 from holding Mid Cap Growth Profund or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Mid Cap Growth Profund vs. Sterling Capital Ultra
Performance |
| Timeline |
| Mid Cap Growth |
| Sterling Capital Ultra |
Mid-cap Growth and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid-cap Growth and Sterling Capital
The main advantage of trading using opposite Mid-cap Growth and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid-cap Growth 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.| Mid-cap Growth vs. T Rowe Price | Mid-cap Growth vs. T Rowe Price | Mid-cap Growth vs. T Rowe Price | Mid-cap Growth vs. T Rowe Price |
| Sterling Capital vs. Redwood Real Estate | Sterling Capital vs. Aew Real Estate | Sterling Capital vs. Nomura Real Estate | Sterling Capital vs. Short Real Estate |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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