Correlation Between Touchstone Ultra and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Touchstone Ultra 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 Touchstone Ultra and Sterling Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Ultra Short and Sterling Capital Intermediate, you can compare the effects of market volatilities on Touchstone Ultra 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 Touchstone Ultra with a short position of Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Ultra and Sterling Capital.
Diversification Opportunities for Touchstone Ultra and Sterling Capital
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Touchstone and Sterling is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Ultra Short 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 Touchstone Ultra 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 Touchstone Ultra Short 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 Touchstone Ultra i.e., Touchstone Ultra and Sterling Capital go up and down completely randomly.
Pair Corralation between Touchstone Ultra and Sterling Capital
Assuming the 90 days horizon Touchstone Ultra is expected to generate 1.63 times less return on investment than Sterling Capital. But when comparing it to its historical volatility, Touchstone Ultra Short is 1.9 times less risky than Sterling Capital. It trades about 0.27 of its potential returns per unit of risk. Sterling Capital Intermediate is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 861.00 in Sterling Capital Intermediate on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Sterling Capital Intermediate or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Touchstone Ultra Short vs. Sterling Capital Intermediate
Performance |
| Timeline |
| Touchstone Ultra Short |
| Sterling Capital Int |
Touchstone Ultra and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Ultra and Sterling Capital
The main advantage of trading using opposite Touchstone Ultra and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Ultra 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.| Touchstone Ultra vs. Cardinal Small Cap | Touchstone Ultra vs. Smallcap Growth Fund | Touchstone Ultra vs. Pace Smallmedium Value | Touchstone Ultra vs. Ab Small Cap |
| Sterling Capital vs. Sterling Capital Equity | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral | Sterling Capital vs. Sterling Capital Behavioral |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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