Correlation Between Visa and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Visa 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 Visa and Sterling Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Sterling Capital Equity, you can compare the effects of market volatilities on Visa 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 Visa with a short position of Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Sterling Capital.
Diversification Opportunities for Visa and Sterling Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visa and Sterling is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Sterling Capital Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Equity and Visa 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 Visa Class A 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 Equity has no effect on the direction of Visa i.e., Visa and Sterling Capital go up and down completely randomly.
Pair Corralation between Visa and Sterling Capital
If you would invest 25,641 in Visa Class A on September 12, 2024 and sell it today you would earn a total of 5,738 from holding Visa Class A or generate 22.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Visa Class A vs. Sterling Capital Equity
Performance |
| Timeline |
| Visa Class A |
| Sterling Capital Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Visa and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Sterling Capital
The main advantage of trading using opposite Visa and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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.| Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart Holdings | Visa vs. Ally Financial |
| Sterling Capital vs. Rbc Microcap Value | Sterling Capital vs. Scharf Global Opportunity | Sterling Capital vs. Ab Value Fund | Sterling Capital vs. Acm Dynamic Opportunity |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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