Correlation Between Salon City and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Salon City 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 Salon City and Sterling Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salon City and Sterling Capital Focus, you can compare the effects of market volatilities on Salon City 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 Salon City with a short position of Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salon City and Sterling Capital.
Diversification Opportunities for Salon City and Sterling Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Salon and Sterling is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Salon City and Sterling Capital Focus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Focus and Salon City 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 Salon City 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 Focus has no effect on the direction of Salon City i.e., Salon City and Sterling Capital go up and down completely randomly.
Pair Corralation between Salon City and Sterling Capital
If you would invest 2,599 in Sterling Capital Focus on August 26, 2024 and sell it today you would earn a total of 457.00 from holding Sterling Capital Focus or generate 17.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salon City vs. Sterling Capital Focus
Performance |
| Timeline |
| Salon City |
| Sterling Capital Focus |
Salon City and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salon City and Sterling Capital
The main advantage of trading using opposite Salon City and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salon City 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.| Salon City vs. New York Times | Salon City vs. Gannett Co | Salon City vs. Lee Enterprises Incorporated | Salon City vs. Pearson PLC ADR |
| Sterling Capital vs. Absolute Core Strategy | Sterling Capital vs. iShares ESG Advanced | Sterling Capital vs. PIMCO RAFI Dynamic | Sterling Capital vs. HCM Defender 100 |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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