Correlation Between Sterling Capital and Oakmark International

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Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Oakmark International 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 Oakmark International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Capital Corporate and Oakmark International, you can compare the effects of market volatilities on Sterling Capital and Oakmark International 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 Oakmark International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Oakmark International.

Diversification Opportunities for Sterling Capital and Oakmark International

0.48
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Sterling and Oakmark is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Corporate and Oakmark International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark International 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 Corporate are associated (or correlated) with Oakmark International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark International has no effect on the direction of Sterling Capital i.e., Sterling Capital and Oakmark International go up and down completely randomly.

Pair Corralation between Sterling Capital and Oakmark International

Assuming the 90 days horizon Sterling Capital Corporate is expected to under-perform the Oakmark International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Sterling Capital Corporate is 1.98 times less risky than Oakmark International. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Oakmark International is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  2,710  in Oakmark International on August 29, 2022 and sell it today you would lose (331.00)  from holding Oakmark International or give up 12.21% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Sterling Capital Corporate  vs.  Oakmark International

 Performance (%) 
       Timeline  
Sterling Capital Cor 
Sterling Performance
0 of 100
Over the last 90 days Sterling Capital Corporate has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong primary indicators, Sterling Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Sterling Price Channel

Oakmark International 
Oakmark Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Oakmark International are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Oakmark International may actually be approaching a critical reversion point that can send shares even higher in December 2022.

Oakmark Price Channel

Sterling Capital and Oakmark International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sterling Capital and Oakmark International

The main advantage of trading using opposite Sterling Capital and Oakmark International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Oakmark International 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 Oakmark International will offset losses from the drop in Oakmark International's long position.
Sterling Capital vs. Pimco Investment Grade
The idea behind Sterling Capital Corporate and Oakmark International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Oakmark International vs. Fidelity Advisor Energy
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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