Correlation Between Sterling Capital and Voya Large
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Voya Large 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 Voya Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Capital Stratton and Voya Large Cap, you can compare the effects of market volatilities on Sterling Capital and Voya Large 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 Voya Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Voya Large.
Diversification Opportunities for Sterling Capital and Voya Large
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sterling and Voya is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Stratton and Voya Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Large Cap 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 Stratton are associated (or correlated) with Voya Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Large Cap has no effect on the direction of Sterling Capital i.e., Sterling Capital and Voya Large go up and down completely randomly.
Pair Corralation between Sterling Capital and Voya Large
Assuming the 90 days horizon Sterling Capital is expected to generate 6.44 times less return on investment than Voya Large. In addition to that, Sterling Capital is 1.01 times more volatile than Voya Large Cap. It trades about 0.02 of its total potential returns per unit of risk. Voya Large Cap is currently generating about 0.11 per unit of volatility. If you would invest 1,046 in Voya Large Cap on November 27, 2024 and sell it today you would earn a total of 792.00 from holding Voya Large Cap or generate 75.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Stratton vs. Voya Large Cap
Performance |
| Timeline |
| Sterling Capital Stratton |
| Voya Large Cap |
Sterling Capital and Voya Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Voya Large
The main advantage of trading using opposite Sterling Capital and Voya Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Voya Large 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 Voya Large will offset losses from the drop in Voya Large's long position.| Sterling Capital vs. Columbia Real Estate | Sterling Capital vs. Alpine Realty Income | Sterling Capital vs. Davis Real Estate | Sterling Capital vs. Sterling Capital Stratton |
| Voya Large vs. Glg Intl Small | Voya Large vs. Ft 7934 Corporate | Voya Large vs. Intal High Relative | Voya Large vs. Alternative Asset Allocation |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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