Correlation Between Siit Global and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Siit Global 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 Siit Global and Sterling Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Global Managed and Sterling Capital Mid, you can compare the effects of market volatilities on Siit Global 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 Siit Global with a short position of Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Global and Sterling Capital.
Diversification Opportunities for Siit Global and Sterling Capital
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siit and Sterling is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Siit Global Managed and Sterling Capital Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Mid and Siit Global 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 Siit Global Managed 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 Mid has no effect on the direction of Siit Global i.e., Siit Global and Sterling Capital go up and down completely randomly.
Pair Corralation between Siit Global and Sterling Capital
Assuming the 90 days horizon Siit Global Managed is expected to generate 0.55 times more return on investment than Sterling Capital. However, Siit Global Managed is 1.8 times less risky than Sterling Capital. It trades about 0.1 of its potential returns per unit of risk. Sterling Capital Mid is currently generating about 0.03 per unit of risk. If you would invest 1,089 in Siit Global Managed on September 12, 2024 and sell it today you would earn a total of 195.00 from holding Siit Global Managed or generate 17.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Global Managed vs. Sterling Capital Mid
Performance |
| Timeline |
| Siit Global Managed |
| Sterling Capital Mid |
Siit Global and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Global and Sterling Capital
The main advantage of trading using opposite Siit Global and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Global 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.| Siit Global vs. Qs Growth Fund | Siit Global vs. Ab Value Fund | Siit Global vs. Century Small Cap | Siit Global vs. T Rowe Price |
| Sterling Capital vs. Jhancock Global Equity | Sterling Capital vs. Siit Global Managed | Sterling Capital vs. Franklin Mutual Global | Sterling Capital vs. Ab Global Bond |
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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