Correlation Between Oshidori International and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Oshidori International 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 Oshidori International and Sterling Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oshidori International Holdings and Sterling Capital Special, you can compare the effects of market volatilities on Oshidori International 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 Oshidori International with a short position of Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oshidori International and Sterling Capital.
Diversification Opportunities for Oshidori International and Sterling Capital
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oshidori and Sterling is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Oshidori International Holding and Sterling Capital Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Special and Oshidori International 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 Oshidori International Holdings 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 Special has no effect on the direction of Oshidori International i.e., Oshidori International and Sterling Capital go up and down completely randomly.
Pair Corralation between Oshidori International and Sterling Capital
Assuming the 90 days horizon Oshidori International Holdings is expected to generate 98.63 times more return on investment than Sterling Capital. However, Oshidori International is 98.63 times more volatile than Sterling Capital Special. It trades about 0.09 of its potential returns per unit of risk. Sterling Capital Special is currently generating about 0.14 per unit of risk. If you would invest 0.07 in Oshidori International Holdings on September 1, 2024 and sell it today you would earn a total of 0.93 from holding Oshidori International Holdings or generate 1328.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Oshidori International Holding vs. Sterling Capital Special
Performance |
| Timeline |
| Oshidori International |
| Sterling Capital Special |
Oshidori International and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oshidori International and Sterling Capital
The main advantage of trading using opposite Oshidori International and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oshidori International 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.| Oshidori International vs. Morgan Stanley | Oshidori International vs. Goldman Sachs Group | Oshidori International vs. HUMANA INC | Oshidori International vs. SCOR PK |
| Sterling Capital vs. Angel Oak Financial | Sterling Capital vs. Blackrock Financial Institutions | Sterling Capital vs. Mesirow Financial Small | Sterling Capital vs. Transamerica Financial Life |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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