Correlation Between Sterling Capital and Multisector Bond
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Multisector Bond 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 Multisector Bond 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 Multisector Bond Sma, you can compare the effects of market volatilities on Sterling Capital and Multisector Bond 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 Multisector Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Multisector Bond.
Diversification Opportunities for Sterling Capital and Multisector Bond
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between STERLING and Multisector is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Behavioral and Multisector Bond Sma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multisector Bond Sma 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 Multisector Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multisector Bond Sma has no effect on the direction of Sterling Capital i.e., Sterling Capital and Multisector Bond go up and down completely randomly.
Pair Corralation between Sterling Capital and Multisector Bond
Assuming the 90 days horizon Sterling Capital Behavioral is expected to generate 3.3 times more return on investment than Multisector Bond. However, Sterling Capital is 3.3 times more volatile than Multisector Bond Sma. It trades about 0.06 of its potential returns per unit of risk. Multisector Bond Sma is currently generating about 0.12 per unit of risk. If you would invest 3,131 in Sterling Capital Behavioral on September 2, 2025 and sell it today you would earn a total of 490.00 from holding Sterling Capital Behavioral or generate 15.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Behavioral vs. Multisector Bond Sma
Performance |
| Timeline |
| Sterling Capital Beh |
| Multisector Bond Sma |
Sterling Capital and Multisector Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Multisector Bond
The main advantage of trading using opposite Sterling Capital and Multisector Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Multisector Bond 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 Multisector Bond will offset losses from the drop in Multisector Bond's long position.| Sterling Capital vs. Vanguard Information Technology | Sterling Capital vs. Allianzgi Technology Fund | Sterling Capital vs. Technology Ultrasector Profund | Sterling Capital vs. Towpath Technology |
| Multisector Bond vs. Sterling Capital Behavioral | Multisector Bond vs. Legg Mason Partners | Multisector Bond vs. Sei Insti Mgd | Multisector Bond vs. Massmutual Premier Diversified |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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