Correlation Between Realty Income and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Realty Income 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 Realty Income and Sterling Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Realty Income and Sterling Capital Stratton, you can compare the effects of market volatilities on Realty Income 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 Realty Income with a short position of Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Realty Income and Sterling Capital.
Diversification Opportunities for Realty Income and Sterling Capital
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Realty and Sterling is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Realty Income and Sterling Capital Stratton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Stratton and Realty Income 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 Realty Income 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 Stratton has no effect on the direction of Realty Income i.e., Realty Income and Sterling Capital go up and down completely randomly.
Pair Corralation between Realty Income and Sterling Capital
Taking into account the 90-day investment horizon Realty Income is expected to generate 5.64 times less return on investment than Sterling Capital. In addition to that, Realty Income is 1.04 times more volatile than Sterling Capital Stratton. It trades about 0.01 of its total potential returns per unit of risk. Sterling Capital Stratton is currently generating about 0.04 per unit of volatility. If you would invest 3,388 in Sterling Capital Stratton on August 30, 2024 and sell it today you would earn a total of 674.00 from holding Sterling Capital Stratton or generate 19.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Realty Income vs. Sterling Capital Stratton
Performance |
| Timeline |
| Realty Income |
| Sterling Capital Stratton |
Realty Income and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Realty Income and Sterling Capital
The main advantage of trading using opposite Realty Income and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Realty Income 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.| Realty Income vs. Federal Realty Investment | Realty Income vs. Macerich Company | Realty Income vs. National Retail Properties | Realty Income vs. Kimco Realty |
| Sterling Capital vs. Amg River Road | Sterling Capital vs. Pace Smallmedium Value | Sterling Capital vs. Hennessy Nerstone Mid | Sterling Capital vs. American Century Etf |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |