Correlation Between Stepstone and BHCCN
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By analyzing existing cross correlation between Stepstone Group and BHCCN 11 30 SEP 28, you can compare the effects of market volatilities on Stepstone and BHCCN 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 BHCCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepstone and BHCCN.
Diversification Opportunities for Stepstone and BHCCN
Good diversification
The 3 months correlation between Stepstone and BHCCN is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Stepstone Group and BHCCN 11 30 SEP 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BHCCN 11 30 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 BHCCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BHCCN 11 30 has no effect on the direction of Stepstone i.e., Stepstone and BHCCN go up and down completely randomly.
Pair Corralation between Stepstone and BHCCN
Given the investment horizon of 90 days Stepstone Group is expected to under-perform the BHCCN. In addition to that, Stepstone is 1.08 times more volatile than BHCCN 11 30 SEP 28. It trades about -0.33 of its total potential returns per unit of risk. BHCCN 11 30 SEP 28 is currently generating about -0.05 per unit of volatility. If you would invest 9,268 in BHCCN 11 30 SEP 28 on December 8, 2024 and sell it today you would lose (318.00) from holding BHCCN 11 30 SEP 28 or give up 3.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stepstone Group vs. BHCCN 11 30 SEP 28
Performance |
| Timeline |
| Stepstone Group |
| BHCCN 11 30 |
Stepstone and BHCCN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepstone and BHCCN
The main advantage of trading using opposite Stepstone and BHCCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepstone position performs unexpectedly, BHCCN 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 BHCCN will offset losses from the drop in BHCCN's long position.| Stepstone vs. Munivest Fund | ||
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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