Correlation Between Stepstone and APACHE
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By analyzing existing cross correlation between Stepstone Group and APACHE P 425, you can compare the effects of market volatilities on Stepstone and APACHE 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 APACHE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepstone and APACHE.
Diversification Opportunities for Stepstone and APACHE
Excellent diversification
The 3 months correlation between Stepstone and APACHE is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Stepstone Group and APACHE P 425 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APACHE P 425 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 APACHE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APACHE P 425 has no effect on the direction of Stepstone i.e., Stepstone and APACHE go up and down completely randomly.
Pair Corralation between Stepstone and APACHE
Given the investment horizon of 90 days Stepstone Group is expected to generate 0.93 times more return on investment than APACHE. However, Stepstone Group is 1.08 times less risky than APACHE. It trades about 0.16 of its potential returns per unit of risk. APACHE P 425 is currently generating about -0.08 per unit of risk. 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 | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Stepstone Group vs. APACHE P 425
Performance |
| Timeline |
| Stepstone Group |
| APACHE P 425 |
Stepstone and APACHE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepstone and APACHE
The main advantage of trading using opposite Stepstone and APACHE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepstone position performs unexpectedly, APACHE 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 APACHE will offset losses from the drop in APACHE's long position.| Stepstone vs. Visa Class A | Stepstone vs. Diamond Hill Investment | Stepstone vs. Distoken Acquisition | Stepstone vs. Associated Capital Group |
| APACHE vs. Franklin Credit Management | APACHE vs. Stepstone Group | APACHE vs. SNDL Inc | APACHE vs. Brandywine Realty Trust |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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