Correlation Between 70082LAB3 and Sterling Capital
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By analyzing existing cross correlation between US70082LAB36 and Sterling Capital Special, you can compare the effects of market volatilities on 70082LAB3 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 70082LAB3 with a short position of Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of 70082LAB3 and Sterling Capital.
Diversification Opportunities for 70082LAB3 and Sterling Capital
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 70082LAB3 and Sterling is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding US70082LAB36 and Sterling Capital Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Special and 70082LAB3 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 US70082LAB36 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 Special has no effect on the direction of 70082LAB3 i.e., 70082LAB3 and Sterling Capital go up and down completely randomly.
Pair Corralation between 70082LAB3 and Sterling Capital
Assuming the 90 days trading horizon US70082LAB36 is expected to under-perform the Sterling Capital. In addition to that, 70082LAB3 is 1.84 times more volatile than Sterling Capital Special. It trades about -0.22 of its total potential returns per unit of risk. Sterling Capital Special is currently generating about 0.34 per unit of volatility. If you would invest 3,077 in Sterling Capital Special on September 1, 2024 and sell it today you would earn a total of 208.00 from holding Sterling Capital Special or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 50.0% |
| Values | Daily Returns |
US70082LAB36 vs. Sterling Capital Special
Performance |
| Timeline |
| US70082LAB36 |
| Sterling Capital Special |
70082LAB3 and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 70082LAB3 and Sterling Capital
The main advantage of trading using opposite 70082LAB3 and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 70082LAB3 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.| 70082LAB3 vs. The9 Ltd ADR | 70082LAB3 vs. NetEase | 70082LAB3 vs. Aegon NV ADR | 70082LAB3 vs. Employers Holdings |
| Sterling Capital vs. Angel Oak Financial | Sterling Capital vs. Blackrock Financial Institutions | Sterling Capital vs. Mesirow Financial Small | Sterling Capital vs. Transamerica Financial Life |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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