Correlation Between INDUSTRIAL MEDICAL and STERLING FINANCIAL
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By analyzing existing cross correlation between INDUSTRIAL MEDICAL GASES and STERLING FINANCIAL HOLDINGS, you can compare the effects of market volatilities on INDUSTRIAL MEDICAL and STERLING FINANCIAL 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 INDUSTRIAL MEDICAL with a short position of STERLING FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDUSTRIAL MEDICAL and STERLING FINANCIAL.
Diversification Opportunities for INDUSTRIAL MEDICAL and STERLING FINANCIAL
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between INDUSTRIAL and STERLING is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding INDUSTRIAL MEDICAL GASES and STERLING FINANCIAL HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STERLING FINANCIAL and INDUSTRIAL MEDICAL 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 INDUSTRIAL MEDICAL GASES are associated (or correlated) with STERLING FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STERLING FINANCIAL has no effect on the direction of INDUSTRIAL MEDICAL i.e., INDUSTRIAL MEDICAL and STERLING FINANCIAL go up and down completely randomly.
Pair Corralation between INDUSTRIAL MEDICAL and STERLING FINANCIAL
Assuming the 90 days trading horizon INDUSTRIAL MEDICAL GASES is expected to generate 0.86 times more return on investment than STERLING FINANCIAL. However, INDUSTRIAL MEDICAL GASES is 1.16 times less risky than STERLING FINANCIAL. It trades about 0.18 of its potential returns per unit of risk. STERLING FINANCIAL HOLDINGS is currently generating about 0.06 per unit of risk. If you would invest 1,190 in INDUSTRIAL MEDICAL GASES on March 23, 2025 and sell it today you would earn a total of 2,300 from holding INDUSTRIAL MEDICAL GASES or generate 193.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INDUSTRIAL MEDICAL GASES vs. STERLING FINANCIAL HOLDINGS
Performance |
| Timeline |
| INDUSTRIAL MEDICAL GASES |
| STERLING FINANCIAL |
INDUSTRIAL MEDICAL and STERLING FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDUSTRIAL MEDICAL and STERLING FINANCIAL
The main advantage of trading using opposite INDUSTRIAL MEDICAL and STERLING FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDUSTRIAL MEDICAL position performs unexpectedly, STERLING FINANCIAL 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 STERLING FINANCIAL will offset losses from the drop in STERLING FINANCIAL's long position.| INDUSTRIAL MEDICAL vs. AFROMEDIA PLC | INDUSTRIAL MEDICAL vs. TRANSCORP HOTELS PLC | INDUSTRIAL MEDICAL vs. MULTI TREX INTEGRATED FOODS | INDUSTRIAL MEDICAL vs. CUSTODIAN INVESTMENT PLC |
| STERLING FINANCIAL vs. NEM INSURANCE PLC | STERLING FINANCIAL vs. CONSOLIDATED HALLMARK INSURANCE | STERLING FINANCIAL vs. CHAMPION BREWERIES PLC | STERLING FINANCIAL vs. IKEJA HOTELS PLC |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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