Correlation Between Sterling Capital and Sterling Capital

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Sterling Capital 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 Sterling Capital and Sterling Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Capital Equity and Sterling Capital Intermediate, you can compare the effects of market volatilities on Sterling Capital 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 Sterling Capital with a short position of Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Sterling Capital.

Diversification Opportunities for Sterling Capital and Sterling Capital

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Sterling and Sterling is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Equity and Sterling Capital Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Int 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 Equity 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 Int has no effect on the direction of Sterling Capital i.e., Sterling Capital and Sterling Capital go up and down completely randomly.

Pair Corralation between Sterling Capital and Sterling Capital

If you would invest  0.00  in Sterling Capital Equity on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Sterling Capital Equity or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.56%
ValuesDaily Returns

Sterling Capital Equity  vs.  Sterling Capital Intermediate

 Performance 
       Timeline  
Sterling Capital Equity 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Weak
Over the last 90 days Sterling Capital Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Sterling Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Sterling Capital Int 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Sterling Capital Intermediate has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Sterling Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Sterling Capital and Sterling Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sterling Capital and Sterling Capital

The main advantage of trading using opposite Sterling Capital and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital 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.
The idea behind Sterling Capital Equity and Sterling Capital Intermediate pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

Other Complementary Tools

Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences