Correlation Between Sterling Capital and Fidelity California
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Fidelity California 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 Fidelity California 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 Fidelity California Municipal, you can compare the effects of market volatilities on Sterling Capital and Fidelity California 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 Fidelity California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Fidelity California.
Diversification Opportunities for Sterling Capital and Fidelity California
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sterling and Fidelity is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Behavioral and Fidelity California Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity California 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 Fidelity California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity California has no effect on the direction of Sterling Capital i.e., Sterling Capital and Fidelity California go up and down completely randomly.
Pair Corralation between Sterling Capital and Fidelity California
Assuming the 90 days horizon Sterling Capital Behavioral is expected to generate 5.34 times more return on investment than Fidelity California. However, Sterling Capital is 5.34 times more volatile than Fidelity California Municipal. It trades about 0.16 of its potential returns per unit of risk. Fidelity California Municipal is currently generating about 0.24 per unit of risk. If you would invest 3,389 in Sterling Capital Behavioral on September 9, 2025 and sell it today you would earn a total of 241.00 from holding Sterling Capital Behavioral or generate 7.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Behavioral vs. Fidelity California Municipal
Performance |
| Timeline |
| Sterling Capital Beh |
| Fidelity California |
Sterling Capital and Fidelity California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Fidelity California
The main advantage of trading using opposite Sterling Capital and Fidelity California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Fidelity California 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 Fidelity California will offset losses from the drop in Fidelity California's long position.| Sterling Capital vs. Tiaa Cref Small Cap Equity | Sterling Capital vs. Rational Dividend Capture | Sterling Capital vs. Arrow Managed Futures | Sterling Capital vs. Rbb Fund |
| Fidelity California vs. Pender Real Estate | Fidelity California vs. Vy Clarion Real | Fidelity California vs. Short Real Estate | Fidelity California vs. Global Real Estate |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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