Correlation Between Sterling Capital and Abrdn Em
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Abrdn Em 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 Abrdn Em into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Capital Stratton and Abrdn Em Sma, you can compare the effects of market volatilities on Sterling Capital and Abrdn Em 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 Abrdn Em. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Abrdn Em.
Diversification Opportunities for Sterling Capital and Abrdn Em
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sterling and Abrdn is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Stratton and Abrdn Em Sma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abrdn Em 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 Stratton are associated (or correlated) with Abrdn Em. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abrdn Em Sma has no effect on the direction of Sterling Capital i.e., Sterling Capital and Abrdn Em go up and down completely randomly.
Pair Corralation between Sterling Capital and Abrdn Em
Assuming the 90 days horizon Sterling Capital is expected to generate 7.14 times less return on investment than Abrdn Em. But when comparing it to its historical volatility, Sterling Capital Stratton is 1.1 times less risky than Abrdn Em. It trades about 0.04 of its potential returns per unit of risk. Abrdn Em Sma is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 895.00 in Abrdn Em Sma on May 26, 2025 and sell it today you would earn a total of 156.00 from holding Abrdn Em Sma or generate 17.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Stratton vs. Abrdn Em Sma
Performance |
| Timeline |
| Sterling Capital Stratton |
| Abrdn Em Sma |
Sterling Capital and Abrdn Em Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Abrdn Em
The main advantage of trading using opposite Sterling Capital and Abrdn Em positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Abrdn Em 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 Abrdn Em will offset losses from the drop in Abrdn Em's long position.| Sterling Capital vs. Baron Health Care | Sterling Capital vs. Lord Abbett Health | Sterling Capital vs. Eventide Healthcare Life | Sterling Capital vs. Delaware Healthcare Fund |
| Abrdn Em vs. Wabmsx | Abrdn Em vs. Abr 7525 Volatility | Abrdn Em vs. Qs Large Cap | Abrdn Em vs. Ab Value Fund |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |