Correlation Between Stepstone and SP High
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By analyzing existing cross correlation between Stepstone Group and SP High Yield, you can compare the effects of market volatilities on Stepstone and SP High 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 Stepstone with a short position of SP High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepstone and SP High.
Diversification Opportunities for Stepstone and SP High
Modest diversification
The 3 months correlation between Stepstone and SPHYDA is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Stepstone Group and SP High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP High Yield and Stepstone 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 Stepstone Group are associated (or correlated) with SP High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP High Yield has no effect on the direction of Stepstone i.e., Stepstone and SP High go up and down completely randomly.
Pair Corralation between Stepstone and SP High
Given the investment horizon of 90 days Stepstone Group is expected to generate 3.83 times more return on investment than SP High. However, Stepstone is 3.83 times more volatile than SP High Yield. It trades about 0.04 of its potential returns per unit of risk. SP High Yield is currently generating about -0.13 per unit of risk. If you would invest 5,648 in Stepstone Group on September 25, 2024 and sell it today you would earn a total of 269.00 from holding Stepstone Group or generate 4.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Stepstone Group vs. SP High Yield
Performance |
Timeline |
Stepstone and SP High Volatility Contrast
Predicted Return Density |
Returns |
Stepstone Group
Pair trading matchups for Stepstone
SP High Yield
Pair trading matchups for SP High
Pair Trading with Stepstone and SP High
The main advantage of trading using opposite Stepstone and SP High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepstone position performs unexpectedly, SP High 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 SP High will offset losses from the drop in SP High's long position.Stepstone vs. Aquagold International | Stepstone vs. Morningstar Unconstrained Allocation | Stepstone vs. Thrivent High Yield | Stepstone vs. Via Renewables |
SP High vs. Parker Hannifin | SP High vs. NRG Energy | SP High vs. IPG Photonics | SP High vs. Aris Water Solutions |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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