Correlation Between Stepstone and Sable Offshore
Can any of the company-specific risk be diversified away by investing in both Stepstone and Sable Offshore 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 Sable Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stepstone Group and Sable Offshore Corp, you can compare the effects of market volatilities on Stepstone and Sable Offshore 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 Sable Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepstone and Sable Offshore.
Diversification Opportunities for Stepstone and Sable Offshore
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stepstone and Sable is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Stepstone Group and Sable Offshore Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sable Offshore Corp 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 Sable Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sable Offshore Corp has no effect on the direction of Stepstone i.e., Stepstone and Sable Offshore go up and down completely randomly.
Pair Corralation between Stepstone and Sable Offshore
Given the investment horizon of 90 days Stepstone Group is expected to generate 0.69 times more return on investment than Sable Offshore. However, Stepstone Group is 1.44 times less risky than Sable Offshore. It trades about 0.09 of its potential returns per unit of risk. Sable Offshore Corp is currently generating about 0.06 per unit of risk. If you would invest 2,374 in Stepstone Group on September 19, 2024 and sell it today you would earn a total of 3,354 from holding Stepstone Group or generate 141.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.56% |
| Values | Daily Returns |
Stepstone Group vs. Sable Offshore Corp
Performance |
| Timeline |
| Stepstone Group |
| Sable Offshore Corp |
Stepstone and Sable Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepstone and Sable Offshore
The main advantage of trading using opposite Stepstone and Sable Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepstone position performs unexpectedly, Sable Offshore 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 Sable Offshore will offset losses from the drop in Sable Offshore's long position.| Stepstone vs. Munivest Fund | Stepstone vs. Blackrock Muniyield Quality | Stepstone vs. Federated Investors B | Stepstone vs. Federated Premier Municipal |
| Sable Offshore vs. Helmerich and Payne | Sable Offshore vs. Noble plc | Sable Offshore vs. Nabors Industries | Sable Offshore vs. Precision Drilling |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |