Correlation Between Stepan and FISERV
Specify exactly 2 symbols:
By analyzing existing cross correlation between Stepan Company and FISERV INC, you can compare the effects of market volatilities on Stepan and FISERV 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 Stepan with a short position of FISERV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepan and FISERV.
Diversification Opportunities for Stepan and FISERV
Weak diversification
The 3 months correlation between Stepan and FISERV is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Stepan Company and FISERV INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FISERV INC and Stepan 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 Stepan Company are associated (or correlated) with FISERV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FISERV INC has no effect on the direction of Stepan i.e., Stepan and FISERV go up and down completely randomly.
Pair Corralation between Stepan and FISERV
Considering the 90-day investment horizon Stepan Company is expected to generate 4.17 times more return on investment than FISERV. However, Stepan is 4.17 times more volatile than FISERV INC. It trades about 0.06 of its potential returns per unit of risk. FISERV INC is currently generating about -0.13 per unit of risk. If you would invest 7,206 in Stepan Company on September 12, 2024 and sell it today you would earn a total of 396.00 from holding Stepan Company or generate 5.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.31% |
| Values | Daily Returns |
Stepan Company vs. FISERV INC
Performance |
| Timeline |
| Stepan Company |
| FISERV INC |
Stepan and FISERV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepan and FISERV
The main advantage of trading using opposite Stepan and FISERV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepan position performs unexpectedly, FISERV 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 FISERV will offset losses from the drop in FISERV's long position.| Stepan vs. LyondellBasell Industries NV | Stepan vs. International Flavors Fragrances | Stepan vs. Cabot | Stepan vs. Westlake Chemical |
| FISERV vs. Zhihu Inc ADR | FISERV vs. SmartStop Self Storage | FISERV vs. Allient | FISERV vs. Vishay Precision Group |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |