Correlation Between Sterling Capital and Intal High
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Intal High 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 Intal High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Capital Total and Intal High Relative, you can compare the effects of market volatilities on Sterling Capital and Intal High 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 Intal High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Intal High.
Diversification Opportunities for Sterling Capital and Intal High
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sterling and Intal is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Total and Intal High Relative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intal High Relative 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 Total are associated (or correlated) with Intal High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intal High Relative has no effect on the direction of Sterling Capital i.e., Sterling Capital and Intal High go up and down completely randomly.
Pair Corralation between Sterling Capital and Intal High
Assuming the 90 days horizon Sterling Capital is expected to generate 2.06 times less return on investment than Intal High. But when comparing it to its historical volatility, Sterling Capital Total is 1.94 times less risky than Intal High. It trades about 0.23 of its potential returns per unit of risk. Intal High Relative is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,274 in Intal High Relative on September 13, 2024 and sell it today you would earn a total of 37.00 from holding Intal High Relative or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Total vs. Intal High Relative
Performance |
| Timeline |
| Sterling Capital Total |
| Intal High Relative |
Sterling Capital and Intal High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Intal High
The main advantage of trading using opposite Sterling Capital and Intal High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Intal High 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 Intal High will offset losses from the drop in Intal High'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 Behavioral |
| Intal High vs. Dfa International | Intal High vs. Dfa Inflation Protected | Intal High vs. Dfa International Small | Intal High vs. Dfa 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stocks Directory Find actively traded stocks across global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |