Correlation Between SECURE ELECTRONIC and STERLING FINANCIAL
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By analyzing existing cross correlation between SECURE ELECTRONIC TECHNOLOGY and STERLING FINANCIAL HOLDINGS, you can compare the effects of market volatilities on SECURE ELECTRONIC 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 SECURE ELECTRONIC with a short position of STERLING FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SECURE ELECTRONIC and STERLING FINANCIAL.
Diversification Opportunities for SECURE ELECTRONIC and STERLING FINANCIAL
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SECURE and STERLING is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding SECURE ELECTRONIC TECHNOLOGY and STERLING FINANCIAL HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STERLING FINANCIAL and SECURE ELECTRONIC 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 SECURE ELECTRONIC TECHNOLOGY 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 SECURE ELECTRONIC i.e., SECURE ELECTRONIC and STERLING FINANCIAL go up and down completely randomly.
Pair Corralation between SECURE ELECTRONIC and STERLING FINANCIAL
Assuming the 90 days trading horizon SECURE ELECTRONIC TECHNOLOGY is expected to generate 1.23 times more return on investment than STERLING FINANCIAL. However, SECURE ELECTRONIC is 1.23 times more volatile than STERLING FINANCIAL HOLDINGS. It trades about 0.06 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 55.00 in SECURE ELECTRONIC TECHNOLOGY on March 23, 2025 and sell it today you would earn a total of 5.00 from holding SECURE ELECTRONIC TECHNOLOGY or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SECURE ELECTRONIC TECHNOLOGY vs. STERLING FINANCIAL HOLDINGS
Performance |
| Timeline |
| SECURE ELECTRONIC |
| STERLING FINANCIAL |
SECURE ELECTRONIC and STERLING FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SECURE ELECTRONIC and STERLING FINANCIAL
The main advantage of trading using opposite SECURE ELECTRONIC and STERLING FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SECURE ELECTRONIC 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.| SECURE ELECTRONIC vs. ECOBANK TRANSNATIONAL INCORPORATED | SECURE ELECTRONIC vs. CONSOLIDATED HALLMARK INSURANCE | SECURE ELECTRONIC vs. FORTIS GLOBAL INSURANCE | SECURE ELECTRONIC vs. AIICO INSURANCE 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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