Correlation Between Sterling Capital and Calvert Large

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

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

Diversification Opportunities for Sterling Capital and Calvert Large

-0.6

Correlation Coefficient

Sterling Capital  Calvert Large

Excellent diversification

The 3 months correlation between Sterling and Calvert is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Behavioral and Calvert Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Large Cap and Sterling Capital 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 Sterling Capital Behavioral are associated (or correlated) with Calvert Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Large Cap has no effect on the direction of Sterling Capital i.e., Sterling Capital and Calvert Large go up and down completely randomly.

Pair Corralation between Sterling Capital and Calvert Large

Assuming the 90 days horizon Sterling Capital Behavioral is expected to under-perform the Calvert Large. In addition to that, Sterling Capital is 18.64 times more volatile than Calvert Large Cap. It trades about -0.17 of its total potential returns per unit of risk. Calvert Large Cap is currently generating about 0.25 per unit of volatility. If you would invest  963.00  in Calvert Large Cap on December 22, 2024 and sell it today you would earn a total of  13.00  from holding Calvert Large Cap or generate 1.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	36.67%
Values	Daily Returns

Sterling Capital Behavioral  vs.  Calvert Large Cap

Sterling Capital Beh

Risk-Adjusted Performance

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 weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Calvert Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Large Cap are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Calvert Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sterling Capital and Calvert Large

The main advantage of trading using opposite Sterling Capital and Calvert Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Calvert Large 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 Calvert Large will offset losses from the drop in Calvert Large's long position.

The idea behind Sterling Capital Behavioral and Calvert Large Cap 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.