Correlation Between STERLING FINANCIAL and VFD GROUP
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By analyzing existing cross correlation between STERLING FINANCIAL HOLDINGS and VFD GROUP, you can compare the effects of market volatilities on STERLING FINANCIAL and VFD GROUP 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 FINANCIAL with a short position of VFD GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of STERLING FINANCIAL and VFD GROUP.
Diversification Opportunities for STERLING FINANCIAL and VFD GROUP
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between STERLING and VFD is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding STERLING FINANCIAL HOLDINGS and VFD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VFD GROUP and STERLING FINANCIAL 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 FINANCIAL HOLDINGS are associated (or correlated) with VFD GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VFD GROUP has no effect on the direction of STERLING FINANCIAL i.e., STERLING FINANCIAL and VFD GROUP go up and down completely randomly.
Pair Corralation between STERLING FINANCIAL and VFD GROUP
Assuming the 90 days trading horizon STERLING FINANCIAL HOLDINGS is expected to generate 2.48 times more return on investment than VFD GROUP. However, STERLING FINANCIAL is 2.48 times more volatile than VFD GROUP. It trades about 0.11 of its potential returns per unit of risk. VFD GROUP is currently generating about -0.13 per unit of risk. If you would invest 402.00 in STERLING FINANCIAL HOLDINGS on September 3, 2024 and sell it today you would earn a total of 86.00 from holding STERLING FINANCIAL HOLDINGS or generate 21.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STERLING FINANCIAL HOLDINGS vs. VFD GROUP
Performance |
| Timeline |
| STERLING FINANCIAL |
| VFD GROUP |
STERLING FINANCIAL and VFD GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STERLING FINANCIAL and VFD GROUP
The main advantage of trading using opposite STERLING FINANCIAL and VFD GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STERLING FINANCIAL position performs unexpectedly, VFD GROUP 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 VFD GROUP will offset losses from the drop in VFD GROUP's long position.| STERLING FINANCIAL vs. MULTIVERSE MINING AND | STERLING FINANCIAL vs. IKEJA HOTELS PLC | STERLING FINANCIAL vs. JAIZ BANK PLC | STERLING FINANCIAL vs. GOLDLINK INSURANCE PLC |
| VFD GROUP vs. CONSOLIDATED HALLMARK INSURANCE | VFD GROUP vs. STERLING FINANCIAL HOLDINGS | VFD GROUP vs. TOTALENERGIES MARKETING NIGERIA | VFD GROUP vs. UNITED BANK FOR |
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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