Correlation Between Sterling Capital and Glg Intl

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Glg Intl 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 Glg Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Capital Securitized and Glg Intl Small, you can compare the effects of market volatilities on Sterling Capital and Glg Intl 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 Glg Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Glg Intl.

Diversification Opportunities for Sterling Capital and Glg Intl

-0.36
  Correlation Coefficient

Very good diversification

The 3 months correlation between Sterling and Glg is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Securitized and Glg Intl Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glg Intl Small 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 Securitized are associated (or correlated) with Glg Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glg Intl Small has no effect on the direction of Sterling Capital i.e., Sterling Capital and Glg Intl go up and down completely randomly.

Pair Corralation between Sterling Capital and Glg Intl

Assuming the 90 days horizon Sterling Capital Securitized is expected to under-perform the Glg Intl. But the mutual fund apears to be less risky and, when comparing its historical volatility, Sterling Capital Securitized is 3.48 times less risky than Glg Intl. The mutual fund trades about -0.18 of its potential returns per unit of risk. The Glg Intl Small is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  8,001  in Glg Intl Small on September 17, 2024 and sell it today you would earn a total of  717.00  from holding Glg Intl Small or generate 8.96% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Sterling Capital Securitized  vs.  Glg Intl Small

 Performance 
       Timeline  
Sterling Capital Sec 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Sterling Capital Securitized has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Sterling Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Glg Intl Small 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Glg Intl Small are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Glg Intl may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Sterling Capital and Glg Intl Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sterling Capital and Glg Intl

The main advantage of trading using opposite Sterling Capital and Glg Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Glg Intl 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 Glg Intl will offset losses from the drop in Glg Intl's long position.
The idea behind Sterling Capital Securitized and Glg Intl Small 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.
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

Other Complementary Tools

Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
CEOs Directory
Screen CEOs from public companies around the world
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators