Correlation Between Sterling Capital and Barings Emerging
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Barings Emerging 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 Barings Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Capital Behavioral and Barings Emerging Markets, you can compare the effects of market volatilities on Sterling Capital and Barings Emerging 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 Barings Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Barings Emerging.
Diversification Opportunities for Sterling Capital and Barings Emerging
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sterling and Barings is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Behavioral and Barings Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Emerging Markets 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 Behavioral are associated (or correlated) with Barings Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Emerging Markets has no effect on the direction of Sterling Capital i.e., Sterling Capital and Barings Emerging go up and down completely randomly.
Pair Corralation between Sterling Capital and Barings Emerging
Assuming the 90 days horizon Sterling Capital Behavioral is expected to generate 2.66 times more return on investment than Barings Emerging. However, Sterling Capital is 2.66 times more volatile than Barings Emerging Markets. It trades about 0.28 of its potential returns per unit of risk. Barings Emerging Markets is currently generating about 0.06 per unit of risk. If you would invest 992.00 in Sterling Capital Behavioral on September 14, 2024 and sell it today you would earn a total of 30.00 from holding Sterling Capital Behavioral or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Behavioral vs. Barings Emerging Markets
Performance |
| Timeline |
| Sterling Capital Beh |
| Barings Emerging Markets |
Sterling Capital and Barings Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Barings Emerging
The main advantage of trading using opposite Sterling Capital and Barings Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Barings Emerging 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 Barings Emerging will offset losses from the drop in Barings Emerging'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 South |
| Barings Emerging vs. Clearbridge Energy Mlp | Barings Emerging vs. Dreyfus Natural Resources | Barings Emerging vs. Jennison Natural Resources | Barings Emerging vs. Calvert Global Energy |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |