Correlation Between Sterling Capital and Multi-manager High
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Multi-manager High 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 Sterling Capital and Multi-manager High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Capital Mid and Multi Manager High Yield, you can compare the effects of market volatilities on Sterling Capital and Multi-manager High 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 Sterling Capital with a short position of Multi-manager High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Multi-manager High.
Diversification Opportunities for Sterling Capital and Multi-manager High
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between STERLING and MULTI-MANAGER is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Mid and Multi Manager High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Manager High and Sterling Capital 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 Sterling Capital Mid are associated (or correlated) with Multi-manager High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Manager High has no effect on the direction of Sterling Capital i.e., Sterling Capital and Multi-manager High go up and down completely randomly.
Pair Corralation between Sterling Capital and Multi-manager High
Assuming the 90 days horizon Sterling Capital Mid is expected to generate 8.12 times more return on investment than Multi-manager High. However, Sterling Capital is 8.12 times more volatile than Multi Manager High Yield. It trades about 0.28 of its potential returns per unit of risk. Multi Manager High Yield is currently generating about 0.08 per unit of risk. If you would invest 1,210 in Sterling Capital Mid on August 30, 2024 and sell it today you would earn a total of 81.00 from holding Sterling Capital Mid or generate 6.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Mid vs. Multi Manager High Yield
Performance |
| Timeline |
| Sterling Capital Mid |
| Multi Manager High |
Sterling Capital and Multi-manager High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Multi-manager High
The main advantage of trading using opposite Sterling Capital and Multi-manager High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Multi-manager High 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 Multi-manager High will offset losses from the drop in Multi-manager High's long position.| Sterling Capital vs. Sterling Capital Equity | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral |
| Multi-manager High vs. Pace Large Value | Multi-manager High vs. Tax Managed Large Cap | Multi-manager High vs. American Mutual Fund | Multi-manager High vs. Qs Large Cap |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |