Correlation Between CiT and Sterling Check
Can any of the company-specific risk be diversified away by investing in both CiT and Sterling Check 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 CiT and Sterling Check into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CiT Inc and Sterling Check Corp, you can compare the effects of market volatilities on CiT and Sterling Check 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 CiT with a short position of Sterling Check. Check out your portfolio center. Please also check ongoing floating volatility patterns of CiT and Sterling Check.
Diversification Opportunities for CiT and Sterling Check
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CiT and Sterling is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CiT Inc and Sterling Check Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Check Corp and CiT 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 CiT Inc are associated (or correlated) with Sterling Check. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Check Corp has no effect on the direction of CiT i.e., CiT and Sterling Check go up and down completely randomly.
Pair Corralation between CiT and Sterling Check
If you would invest 666.00 in CiT Inc on December 1, 2024 and sell it today you would earn a total of 50.00 from holding CiT Inc or generate 7.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
CiT Inc vs. Sterling Check Corp
Performance |
Timeline |
CiT Inc |
Sterling Check Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
CiT and Sterling Check Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CiT and Sterling Check
The main advantage of trading using opposite CiT and Sterling Check positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CiT position performs unexpectedly, Sterling Check 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 Check will offset losses from the drop in Sterling Check's long position.CiT vs. Global Blue Group | CiT vs. EverCommerce | CiT vs. CSG Systems International | CiT vs. Consensus Cloud Solutions |
Sterling Check vs. EverCommerce | Sterling Check vs. Evertec | Sterling Check vs. Consensus Cloud Solutions | Sterling Check vs. CSG Systems International |
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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