Correlation Between Sterling Capital and First Eagle
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and First Eagle 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 First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Capital Ultra and First Eagle Fund, you can compare the effects of market volatilities on Sterling Capital and First Eagle 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 First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and First Eagle.
Diversification Opportunities for Sterling Capital and First Eagle
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between STERLING and First is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Ultra and First Eagle Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Fund 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 Ultra are associated (or correlated) with First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Fund has no effect on the direction of Sterling Capital i.e., Sterling Capital and First Eagle go up and down completely randomly.
Pair Corralation between Sterling Capital and First Eagle
Assuming the 90 days horizon Sterling Capital Ultra is expected to generate 0.13 times more return on investment than First Eagle. However, Sterling Capital Ultra is 7.8 times less risky than First Eagle. It trades about 0.21 of its potential returns per unit of risk. First Eagle Fund is currently generating about -0.04 per unit of risk. If you would invest 984.00 in Sterling Capital Ultra on August 10, 2025 and sell it today you would earn a total of 4.00 from holding Sterling Capital Ultra or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Ultra vs. First Eagle Fund
Performance |
| Timeline |
| Sterling Capital Ultra |
| First Eagle Fund |
Sterling Capital and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and First Eagle
The main advantage of trading using opposite Sterling Capital and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.| Sterling Capital vs. Balanced Fund Retail | Sterling Capital vs. Rational Dividend Capture | Sterling Capital vs. Ffuyux | Sterling Capital vs. Ab Select Equity |
| First Eagle vs. Vanguard Institutional Intermediate Term | First Eagle vs. Baird Quality Intermediate | First Eagle vs. Pimco Unconstrained Bond | First Eagle vs. Sterling Capital Ultra |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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