Correlation Between VETIVA BANKING and STERLING FINANCIAL
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By analyzing existing cross correlation between VETIVA BANKING ETF and STERLING FINANCIAL HOLDINGS, you can compare the effects of market volatilities on VETIVA BANKING 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 VETIVA BANKING with a short position of STERLING FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of VETIVA BANKING and STERLING FINANCIAL.
Diversification Opportunities for VETIVA BANKING and STERLING FINANCIAL
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between VETIVA and STERLING is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding VETIVA BANKING ETF and STERLING FINANCIAL HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STERLING FINANCIAL and VETIVA BANKING 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 VETIVA BANKING ETF 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 VETIVA BANKING i.e., VETIVA BANKING and STERLING FINANCIAL go up and down completely randomly.
Pair Corralation between VETIVA BANKING and STERLING FINANCIAL
Assuming the 90 days trading horizon VETIVA BANKING is expected to generate 1.52 times less return on investment than STERLING FINANCIAL. But when comparing it to its historical volatility, VETIVA BANKING ETF is 1.51 times less risky than STERLING FINANCIAL. It trades about 0.13 of its potential returns per unit of risk. STERLING FINANCIAL HOLDINGS is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 578.00 in STERLING FINANCIAL HOLDINGS on June 12, 2025 and sell it today you would earn a total of 172.00 from holding STERLING FINANCIAL HOLDINGS or generate 29.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
VETIVA BANKING ETF vs. STERLING FINANCIAL HOLDINGS
Performance |
| Timeline |
| VETIVA BANKING ETF |
| STERLING FINANCIAL |
VETIVA BANKING and STERLING FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VETIVA BANKING and STERLING FINANCIAL
The main advantage of trading using opposite VETIVA BANKING and STERLING FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VETIVA BANKING 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.| VETIVA BANKING vs. GUINEA INSURANCE PLC | VETIVA BANKING vs. ALUMINIUM EXTRUSION IND | VETIVA BANKING vs. VITAFOAM NIGERIA PLC | VETIVA BANKING vs. JAPAUL OIL MARITIME |
| STERLING FINANCIAL vs. VETIVA INDUSTRIAL ETF | STERLING FINANCIAL vs. MULTI TREX INTEGRATED FOODS | STERLING FINANCIAL vs. CUSTODIAN INVESTMENT PLC | STERLING FINANCIAL vs. BUA FOODS 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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