Correlation Between Ft 9331: and Sterling Capital

Can any of the company-specific risk be diversified away by investing in both Ft 9331: 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 Ft 9331: and Sterling Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ft 9331 Corporate and Sterling Capital Behavioral, you can compare the effects of market volatilities on Ft 9331: 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 Ft 9331: with a short position of Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ft 9331: and Sterling Capital.

Diversification Opportunities for Ft 9331: and Sterling Capital

0.84

Correlation Coefficient

Ft 9331:  Sterling Capital

Very poor diversification

The 3 months correlation between FLQTVX and Sterling is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ft 9331 Corporate and Sterling Capital Behavioral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Beh and Ft 9331: 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 Ft 9331 Corporate 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 Beh has no effect on the direction of Ft 9331: i.e., Ft 9331: and Sterling Capital go up and down completely randomly.

Pair Corralation between Ft 9331: and Sterling Capital

Assuming the 90 days trading horizon Ft 9331 Corporate is expected to generate 0.11 times more return on investment than Sterling Capital. However, Ft 9331 Corporate is 8.85 times less risky than Sterling Capital. It trades about -0.34 of its potential returns per unit of risk. Sterling Capital Behavioral is currently generating about -0.27 per unit of risk. If you would invest  75,930  in Ft 9331 Corporate on October 9, 2024 and sell it today you would lose (641.00) from holding Ft 9331 Corporate or give up 0.84% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Ft 9331 Corporate  vs.  Sterling Capital Behavioral

Ft 9331 Corporate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ft 9331 Corporate has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Ft 9331: is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Sterling Capital Beh

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sterling Capital Behavioral has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Ft 9331: and Sterling Capital

The main advantage of trading using opposite Ft 9331: and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ft 9331: 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.

The idea behind Ft 9331 Corporate and Sterling Capital Behavioral pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.