Correlation Between Sterling Capital and Federated Global
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Federated Global 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 Federated Global 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 Federated Global Allocation, you can compare the effects of market volatilities on Sterling Capital and Federated Global 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 Federated Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Federated Global.
Diversification Opportunities for Sterling Capital and Federated Global
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between STERLING and FEDERATED is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Behavioral and Federated Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Global All 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 Federated Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Global All has no effect on the direction of Sterling Capital i.e., Sterling Capital and Federated Global go up and down completely randomly.
Pair Corralation between Sterling Capital and Federated Global
Assuming the 90 days horizon Sterling Capital Behavioral is expected to generate 1.41 times more return on investment than Federated Global. However, Sterling Capital is 1.41 times more volatile than Federated Global Allocation. It trades about 0.14 of its potential returns per unit of risk. Federated Global Allocation is currently generating about 0.13 per unit of risk. If you would invest 3,381 in Sterling Capital Behavioral on August 29, 2025 and sell it today you would earn a total of 220.00 from holding Sterling Capital Behavioral or generate 6.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Behavioral vs. Federated Global Allocation
Performance |
| Timeline |
| Sterling Capital Beh |
| Federated Global All |
Sterling Capital and Federated Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Federated Global
The main advantage of trading using opposite Sterling Capital and Federated Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Federated Global 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 Federated Global will offset losses from the drop in Federated Global's long position.| Sterling Capital vs. Ridgeworth Seix Government | Sterling Capital vs. Great West Government Mortgage | Sterling Capital vs. Us Government Securities | Sterling Capital vs. Us Government Securities |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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