Correlation Between Stepstone and Forza Petroleum
Can any of the company-specific risk be diversified away by investing in both Stepstone and Forza Petroleum 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 Stepstone and Forza Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stepstone Group and Forza Petroleum Limited, you can compare the effects of market volatilities on Stepstone and Forza Petroleum 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 Forza Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepstone and Forza Petroleum.
Diversification Opportunities for Stepstone and Forza Petroleum
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stepstone and Forza is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stepstone Group and Forza Petroleum Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forza Petroleum 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 Forza Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forza Petroleum has no effect on the direction of Stepstone i.e., Stepstone and Forza Petroleum go up and down completely randomly.
Pair Corralation between Stepstone and Forza Petroleum
If you would invest 6,013 in Stepstone Group on September 1, 2024 and sell it today you would earn a total of 576.00 from holding Stepstone Group or generate 9.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Stepstone Group vs. Forza Petroleum Limited
Performance |
| Timeline |
| Stepstone Group |
| Forza Petroleum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Stepstone and Forza Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepstone and Forza Petroleum
The main advantage of trading using opposite Stepstone and Forza Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepstone position performs unexpectedly, Forza Petroleum 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 Forza Petroleum will offset losses from the drop in Forza Petroleum's long position.| Stepstone vs. Visa Class A | Stepstone vs. Diamond Hill Investment | Stepstone vs. Distoken Acquisition | Stepstone vs. Associated Capital Group |
| Forza Petroleum vs. Stepstone Group | Forza Petroleum vs. Coupang LLC | Forza Petroleum vs. Franklin Credit Management | Forza Petroleum vs. PennantPark Floating Rate |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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