Correlation Between Secureworks Corp and Sterling Check
Can any of the company-specific risk be diversified away by investing in both Secureworks Corp and Sterling Check 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 Secureworks Corp and Sterling Check into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Secureworks Corp and Sterling Check Corp, you can compare the effects of market volatilities on Secureworks Corp and Sterling Check 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 Secureworks Corp with a short position of Sterling Check. Check out your portfolio center. Please also check ongoing floating volatility patterns of Secureworks Corp and Sterling Check.
Diversification Opportunities for Secureworks Corp and Sterling Check
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Secureworks and Sterling is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Secureworks Corp and Sterling Check Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Check Corp and Secureworks Corp 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 Secureworks Corp are associated (or correlated) with Sterling Check. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Check Corp has no effect on the direction of Secureworks Corp i.e., Secureworks Corp and Sterling Check go up and down completely randomly.
Pair Corralation between Secureworks Corp and Sterling Check
Given the investment horizon of 90 days Secureworks Corp is expected to generate 1.64 times more return on investment than Sterling Check. However, Secureworks Corp is 1.64 times more volatile than Sterling Check Corp. It trades about 0.09 of its potential returns per unit of risk. Sterling Check Corp is currently generating about -0.66 per unit of risk. If you would invest 838.00 in Secureworks Corp on October 26, 2024 and sell it today you would earn a total of 8.00 from holding Secureworks Corp or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 6.78% |
| Values | Daily Returns |
Secureworks Corp vs. Sterling Check Corp
Performance |
| Timeline |
| Secureworks Corp |
| Sterling Check Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Secureworks Corp and Sterling Check Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Secureworks Corp and Sterling Check
The main advantage of trading using opposite Secureworks Corp and Sterling Check positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Secureworks Corp position performs unexpectedly, Sterling Check 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 Check will offset losses from the drop in Sterling Check's long position.| Secureworks Corp vs. CSG Systems International | Secureworks Corp vs. Consensus Cloud Solutions | Secureworks Corp vs. Evertec | Secureworks Corp vs. EverCommerce |
| Sterling Check vs. EverCommerce | Sterling Check vs. Evertec | Sterling Check vs. Consensus Cloud Solutions | Sterling Check vs. CSG Systems International |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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