Correlation Between Sterling Capital and Elfun Government
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Elfun Government 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 Elfun Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Capital Porate and Elfun Government Money, you can compare the effects of market volatilities on Sterling Capital and Elfun Government 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 Elfun Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Elfun Government.
Diversification Opportunities for Sterling Capital and Elfun Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sterling and Elfun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Porate and Elfun Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Government Money 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 Porate are associated (or correlated) with Elfun Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elfun Government Money has no effect on the direction of Sterling Capital i.e., Sterling Capital and Elfun Government go up and down completely randomly.
Pair Corralation between Sterling Capital and Elfun Government
If you would invest 698.00 in Sterling Capital Porate on September 4, 2024 and sell it today you would earn a total of 16.00 from holding Sterling Capital Porate or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Porate vs. Elfun Government Money
Performance |
| Timeline |
| Sterling Capital Porate |
| Elfun Government Money |
Sterling Capital and Elfun Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Elfun Government
The main advantage of trading using opposite Sterling Capital and Elfun Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Elfun Government 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 Elfun Government will offset losses from the drop in Elfun Government'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 |
| Elfun Government vs. Dreyfus Natural Resources | Elfun Government vs. Gamco Natural Resources | Elfun Government vs. Adams Natural Resources | Elfun Government vs. Gmo Resources |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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