Correlation Between Sterling Check and Informatica

Can any of the company-specific risk be diversified away by investing in both Sterling Check and Informatica 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 Check and Informatica into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sterling Check Corp and Informatica, you can compare the effects of market volatilities on Sterling Check and Informatica 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 Check with a short position of Informatica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Check and Informatica.

Diversification Opportunities for Sterling Check and Informatica

0.0

Correlation Coefficient

Sterling Check  Informatica

Pay attention - limited upside

The 3 months correlation between Sterling and Informatica is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Check Corp and Informatica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Informatica and Sterling Check 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 Check Corp are associated (or correlated) with Informatica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Informatica has no effect on the direction of Sterling Check i.e., Sterling Check and Informatica go up and down completely randomly.

Pair Corralation between Sterling Check and Informatica

If you would invest (100.00) in Sterling Check Corp on February 3, 2025 and sell it today you would earn a total of  100.00  from holding Sterling Check Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Sterling Check Corp  vs.  Informatica

Sterling Check Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sterling Check Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Sterling Check is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Informatica

Risk-Adjusted Performance

Very Weak

Over the last 90 days Informatica has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in June 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Sterling Check and Informatica

The main advantage of trading using opposite Sterling Check and Informatica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Check position performs unexpectedly, Informatica 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 Informatica will offset losses from the drop in Informatica's long position.

The idea behind Sterling Check Corp and Informatica 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.

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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.