Correlation Between Steward Global and Steward Select
Can any of the company-specific risk be diversified away by investing in both Steward Global and Steward Select 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 Steward Global and Steward Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Steward Global E and Steward Select Bond, you can compare the effects of market volatilities on Steward Global and Steward Select 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 Steward Global with a short position of Steward Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steward Global and Steward Select.
Diversification Opportunities for Steward Global and Steward Select
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Steward and Steward is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Steward Global E and Steward Select Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steward Select Bond and Steward Global 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 Steward Global E are associated (or correlated) with Steward Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steward Select Bond has no effect on the direction of Steward Global i.e., Steward Global and Steward Select go up and down completely randomly.
Pair Corralation between Steward Global and Steward Select
Assuming the 90 days horizon Steward Global E is expected to generate 3.22 times more return on investment than Steward Select. However, Steward Global is 3.22 times more volatile than Steward Select Bond. It trades about 0.07 of its potential returns per unit of risk. Steward Select Bond is currently generating about 0.03 per unit of risk. If you would invest 3,111 in Steward Global E on August 25, 2024 and sell it today you would earn a total of 362.00 from holding Steward Global E or generate 11.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Steward Global E vs. Steward Select Bond
Performance |
| Timeline |
| Steward Global E |
| Steward Select Bond |
Steward Global and Steward Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steward Global and Steward Select
The main advantage of trading using opposite Steward Global and Steward Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steward Global position performs unexpectedly, Steward Select 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 Steward Select will offset losses from the drop in Steward Select's long position.| Steward Global vs. Steward Large Cap | Steward Global vs. Steward Small Mid Cap | Steward Global vs. Aquagold International | Steward Global vs. Morningstar Unconstrained Allocation |
| Steward Select vs. Steward Large Cap | Steward Select vs. Steward Small Mid Cap | Steward Select vs. Steward Select Bond | Steward Select vs. Steward International Enhanced |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |