Sterling Capital Multi Strategy Etf Volatility
| SCMC Etf | 25.11 0.01 0.04% |
At this point, Sterling Capital is very steady. Sterling Capital Multi owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0784, which indicates the etf had a 0.0784 % return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Sterling Capital Multi Strategy, which you can use to evaluate the volatility of the etf. Please validate Sterling Capital's Semi Deviation of 0.1057, coefficient of variation of 1249.56, and Risk Adjusted Performance of 0.0126 to confirm if the risk estimate we provide is consistent with the expected return of 0.01%.
Sterling | Build AI portfolio with Sterling Etf |
Sterling Capital Etf volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Sterling daily returns, and it is calculated using variance and standard deviation. We also use Sterling's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Sterling Capital volatility.
Downward market volatility can be a perfect environment for investors who play the long game with Sterling Capital. They may decide to buy additional shares of Sterling Capital at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving against Sterling Etf
| 0.47 | FGD | First Trust Dow | PairCorr |
| 0.47 | SCHY | Schwab International | PairCorr |
| 0.45 | GAPR | First Trust Exchange | PairCorr |
| 0.42 | SLX | VanEck Steel ETF | PairCorr |
| 0.42 | RFDI | First Trust RiverFront | PairCorr |
| 0.4 | GYLD | Arrow ETF Trust | PairCorr |
| 0.37 | JEPI | JPMorgan Equity Premium | PairCorr |
| 0.36 | VTV | Vanguard Value Index | PairCorr |
| 0.36 | IHYF | Invesco High Yield | PairCorr |
| 0.32 | VEA | Vanguard FTSE Developed | PairCorr |
Sterling Capital Market Sensitivity And Downside Risk
Sterling Capital's beta coefficient measures the volatility of Sterling etf compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Sterling etf's returns against your selected market. In other words, Sterling Capital's beta of 0.0059 provides an investor with an approximation of how much risk Sterling Capital etf can potentially add to one of your existing portfolios. Sterling Capital Multi Strategy exhibits very low volatility with skewness of -2.3 and kurtosis of 8.71. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sterling Capital's etf risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Sterling Capital's etf price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Sterling Capital Multi Demand TrendCheck current 90 days Sterling Capital correlation with market (Dow Jones Industrial)Sterling Capital Volatility and Downside Risk
Sterling standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Sterling Capital Multi Etf Volatility Analysis
Volatility refers to the frequency at which Sterling Capital etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Sterling Capital's price changes. Investors will then calculate the volatility of Sterling Capital's etf to predict their future moves. A etf that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A etf with relatively stable price changes has low volatility. A highly volatile etf is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Sterling Capital's volatility:
Historical Volatility
This type of etf volatility measures Sterling Capital's fluctuations based on previous trends. It's commonly used to predict Sterling Capital's future behavior based on its past. However, it cannot conclusively determine the future direction of the etf.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Sterling Capital's current market price. This means that the etf will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Sterling Capital's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of twenty-four. Sterling Capital Multi Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Sterling Capital Projected Return Density Against Market
Given the investment horizon of 90 days Sterling Capital has a beta of 0.0059 . This usually implies as returns on the market go up, Sterling Capital average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Sterling Capital Multi Strategy will be expected to be much smaller as well.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Sterling Capital or Broad Market ETFs sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Sterling Capital's price will be affected by overall etf market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Sterling etf's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Sterling Capital Multi Strategy has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Sterling Capital Price Volatility?
Several factors can influence a etf's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Sterling Capital Etf Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Sterling Capital is 1275.53. The daily returns are distributed with a variance of 0.02 and standard deviation of 0.13. The mean deviation of Sterling Capital Multi Strategy is currently at 0.08. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.69
α | Alpha over Dow Jones | -0.0001 | |
β | Beta against Dow Jones | 0.01 | |
σ | Overall volatility | 0.13 | |
Ir | Information ratio | -0.76 |
Sterling Capital Etf Return Volatility
Sterling Capital historical daily return volatility represents how much of Sterling Capital etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund inherits 0.1281% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.6994% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
| High negative correlations
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Sterling Capital Competition Risk-Adjusted Indicators
There is a big difference between Sterling Etf performing well and Sterling Capital ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Sterling Capital's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| META | 1.33 | (0.30) | 0.00 | (0.22) | 0.00 | 2.30 | 13.46 | |||
| MSFT | 0.93 | (0.22) | 0.00 | (0.40) | 0.00 | 1.65 | 4.90 | |||
| UBER | 1.45 | (0.24) | 0.00 | (0.17) | 0.00 | 2.60 | 10.23 | |||
| F | 1.41 | 0.16 | 0.14 | 0.21 | 1.25 | 3.38 | 16.30 | |||
| T | 0.90 | (0.14) | 0.00 | (0.27) | 0.00 | 1.63 | 5.78 | |||
| A | 1.09 | (0.04) | (0.02) | 0.06 | 1.21 | 2.34 | 6.50 | |||
| CRM | 1.58 | (0.18) | 0.00 | (0.08) | 0.00 | 3.66 | 12.37 | |||
| JPM | 1.14 | (0.13) | (0.05) | 0.01 | 1.66 | 2.00 | 7.38 | |||
| MRK | 1.22 | 0.32 | 0.24 | 0.48 | 0.97 | 3.59 | 8.09 | |||
| XOM | 1.07 | 0.22 | 0.10 | 2.79 | 0.97 | 2.37 | 5.82 |
Sterling Capital Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.7 and is 5.38 times more volatile than Sterling Capital Multi Strategy. 1 percent of all equities and portfolios are less risky than Sterling Capital. You can use Sterling Capital Multi Strategy to protect your portfolios against small market fluctuations. The etf experiences a normal downward trend and little activity. Check odds of Sterling Capital to be traded at 24.86 in 90 days.Significant diversification
The correlation between Sterling Capital Multi Strateg and DJI is 0.05 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Multi Strateg and DJI in the same portfolio, assuming nothing else is changed.
Sterling Capital Additional Risk Indicators
The analysis of Sterling Capital's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Sterling Capital's investment and either accepting that risk or mitigating it. Along with some common measures of Sterling Capital etf's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0126 | |||
| Market Risk Adjusted Performance | 0.0921 | |||
| Mean Deviation | 0.0804 | |||
| Semi Deviation | 0.1057 | |||
| Downside Deviation | 0.2036 | |||
| Coefficient Of Variation | 1249.56 | |||
| Standard Deviation | 0.131 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential etfs, we recommend comparing similar etfs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Sterling Capital Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
| GM vs. Sterling Capital | ||
| Walker Dunlop vs. Sterling Capital | ||
| Alphabet vs. Sterling Capital | ||
| Visa vs. Sterling Capital | ||
| Dupont De vs. Sterling Capital | ||
| Microsoft vs. Sterling Capital | ||
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Sterling Capital as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Sterling Capital's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Sterling Capital's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Sterling Capital Multi Strategy.