Correlation Between Americafirst Large and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Americafirst Large 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 Americafirst Large and Sterling Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Americafirst Large Cap and Sterling Capital Behavioral, you can compare the effects of market volatilities on Americafirst Large 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 Americafirst Large with a short position of Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Americafirst Large and Sterling Capital.
Diversification Opportunities for Americafirst Large and Sterling Capital
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Americafirst and Sterling is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Americafirst Large Cap and Sterling Capital Behavioral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Beh and Americafirst Large 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 Americafirst Large Cap 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 Beh has no effect on the direction of Americafirst Large i.e., Americafirst Large and Sterling Capital go up and down completely randomly.
Pair Corralation between Americafirst Large and Sterling Capital
Assuming the 90 days horizon Americafirst Large Cap is expected to under-perform the Sterling Capital. In addition to that, Americafirst Large is 1.21 times more volatile than Sterling Capital Behavioral. It trades about -0.11 of its total potential returns per unit of risk. Sterling Capital Behavioral is currently generating about 0.18 per unit of volatility. If you would invest 1,004 in Sterling Capital Behavioral on September 13, 2024 and sell it today you would earn a total of 21.00 from holding Sterling Capital Behavioral or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Americafirst Large Cap vs. Sterling Capital Behavioral
Performance |
| Timeline |
| Americafirst Large Cap |
| Sterling Capital Beh |
Americafirst Large and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Americafirst Large and Sterling Capital
The main advantage of trading using opposite Americafirst Large and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Americafirst Large 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.| Americafirst Large vs. Scharf Global Opportunity | Americafirst Large vs. Ab Value Fund | Americafirst Large vs. Rbc Microcap Value | Americafirst Large vs. T Rowe Price |
| Sterling Capital vs. Sterling Capital Equity | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital South |
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.
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