Correlation Between Stepstone and Rocky Brands
Can any of the company-specific risk be diversified away by investing in both Stepstone and Rocky Brands 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 Rocky Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stepstone Group and Rocky Brands, you can compare the effects of market volatilities on Stepstone and Rocky Brands 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 Rocky Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepstone and Rocky Brands.
Diversification Opportunities for Stepstone and Rocky Brands
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stepstone and Rocky is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Stepstone Group and Rocky Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rocky Brands 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 Rocky Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rocky Brands has no effect on the direction of Stepstone i.e., Stepstone and Rocky Brands go up and down completely randomly.
Pair Corralation between Stepstone and Rocky Brands
Given the investment horizon of 90 days Stepstone Group is expected to generate 1.28 times more return on investment than Rocky Brands. However, Stepstone is 1.28 times more volatile than Rocky Brands. It trades about 0.19 of its potential returns per unit of risk. Rocky Brands is currently generating about 0.13 per unit of risk. If you would invest 5,900 in Stepstone Group on September 2, 2024 and sell it today you would earn a total of 689.00 from holding Stepstone Group or generate 11.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stepstone Group vs. Rocky Brands
Performance |
| Timeline |
| Stepstone Group |
| Rocky Brands |
Stepstone and Rocky Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepstone and Rocky Brands
The main advantage of trading using opposite Stepstone and Rocky Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepstone position performs unexpectedly, Rocky Brands 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 Rocky Brands will offset losses from the drop in Rocky Brands' long position.| Stepstone vs. Munivest Fund | Stepstone vs. Blackrock Muniyield Quality | Stepstone vs. Federated Investors B | Stepstone vs. Federated Premier Municipal |
| Rocky Brands vs. Vera Bradley | Rocky Brands vs. Steven Madden | Rocky Brands vs. Wolverine World Wide | Rocky Brands vs. Caleres |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |