Correlation Between Blackrock Advantage and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Blackrock Advantage 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 Blackrock Advantage and Sterling Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Advantage Total and Sterling Capital Total, you can compare the effects of market volatilities on Blackrock Advantage 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 Blackrock Advantage with a short position of Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Advantage and Sterling Capital.
Diversification Opportunities for Blackrock Advantage and Sterling Capital
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackrock and Sterling is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Advantage Total and Sterling Capital Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Total and Blackrock Advantage 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 Blackrock Advantage Total 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 Total has no effect on the direction of Blackrock Advantage i.e., Blackrock Advantage and Sterling Capital go up and down completely randomly.
Pair Corralation between Blackrock Advantage and Sterling Capital
Assuming the 90 days horizon Blackrock Advantage Total is expected to generate 4.29 times more return on investment than Sterling Capital. However, Blackrock Advantage is 4.29 times more volatile than Sterling Capital Total. It trades about 0.07 of its potential returns per unit of risk. Sterling Capital Total is currently generating about 0.08 per unit of risk. If you would invest 2,662 in Blackrock Advantage Total on September 14, 2024 and sell it today you would earn a total of 476.00 from holding Blackrock Advantage Total or generate 17.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Blackrock Advantage Total vs. Sterling Capital Total
Performance |
| Timeline |
| Blackrock Advantage Total |
| Sterling Capital Total |
Blackrock Advantage and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Advantage and Sterling Capital
The main advantage of trading using opposite Blackrock Advantage and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Advantage 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.| Blackrock Advantage vs. Ambrus Core Bond | Blackrock Advantage vs. Touchstone Premium Yield | Blackrock Advantage vs. Versatile Bond Portfolio | Blackrock Advantage vs. Doubleline Yield Opportunities |
| Sterling Capital vs. Blackrock California Municipal | Sterling Capital vs. Blackrock Balanced Capital | Sterling Capital vs. Blackrock Eurofund Class | Sterling Capital vs. Blackrock Funds |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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