Correlation Between Stepstone and Under
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By analyzing existing cross correlation between Stepstone Group and Under Armour 325, you can compare the effects of market volatilities on Stepstone and Under 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 Under. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepstone and Under.
Diversification Opportunities for Stepstone and Under
Very good diversification
The 3 months correlation between Stepstone and Under is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Stepstone Group and Under Armour 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Under Armour 325 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 Under. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Under Armour 325 has no effect on the direction of Stepstone i.e., Stepstone and Under go up and down completely randomly.
Pair Corralation between Stepstone and Under
Given the investment horizon of 90 days Stepstone Group is expected to generate 4.19 times more return on investment than Under. However, Stepstone is 4.19 times more volatile than Under Armour 325. It trades about 0.17 of its potential returns per unit of risk. Under Armour 325 is currently generating about -0.01 per unit of risk. If you would invest 4,274 in Stepstone Group on September 3, 2024 and sell it today you would earn a total of 2,315 from holding Stepstone Group or generate 54.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.4% |
| Values | Daily Returns |
Stepstone Group vs. Under Armour 325
Performance |
| Timeline |
| Stepstone Group |
| Under Armour 325 |
Stepstone and Under Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepstone and Under
The main advantage of trading using opposite Stepstone and Under positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepstone position performs unexpectedly, Under 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 Under will offset losses from the drop in Under's long position.| Stepstone vs. Munivest Fund | Stepstone vs. Blackrock Muniyield Quality | Stepstone vs. Federated Investors B | Stepstone vs. Federated Premier Municipal |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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