Correlation Between State Street and ALLFUNDS GROUP
Can any of the company-specific risk be diversified away by investing in both State Street and ALLFUNDS GROUP 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 State Street and ALLFUNDS GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street and ALLFUNDS GROUP EO 0025, you can compare the effects of market volatilities on State Street and ALLFUNDS GROUP 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 State Street with a short position of ALLFUNDS GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and ALLFUNDS GROUP.
Diversification Opportunities for State Street and ALLFUNDS GROUP
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between State and ALLFUNDS is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding State Street and ALLFUNDS GROUP EO 0025 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLFUNDS GROUP EO and State Street 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 State Street are associated (or correlated) with ALLFUNDS GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLFUNDS GROUP EO has no effect on the direction of State Street i.e., State Street and ALLFUNDS GROUP go up and down completely randomly.
Pair Corralation between State Street and ALLFUNDS GROUP
Assuming the 90 days horizon State Street is expected to generate 0.9 times more return on investment than ALLFUNDS GROUP. However, State Street is 1.11 times less risky than ALLFUNDS GROUP. It trades about 0.14 of its potential returns per unit of risk. ALLFUNDS GROUP EO 0025 is currently generating about -0.05 per unit of risk. If you would invest 9,392 in State Street on November 3, 2024 and sell it today you would earn a total of 436.00 from holding State Street or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Street vs. ALLFUNDS GROUP EO 0025
Performance |
| Timeline |
| State Street |
| ALLFUNDS GROUP EO |
State Street and ALLFUNDS GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Street and ALLFUNDS GROUP
The main advantage of trading using opposite State Street and ALLFUNDS GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street position performs unexpectedly, ALLFUNDS GROUP 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 ALLFUNDS GROUP will offset losses from the drop in ALLFUNDS GROUP's long position.| State Street vs. COLUMBIA SPORTSWEAR | State Street vs. Telecom Argentina SA | State Street vs. CITIC Telecom International | State Street vs. SPORT LISBOA E |
| ALLFUNDS GROUP vs. Blackstone Group | ALLFUNDS GROUP vs. The Bank of | ALLFUNDS GROUP vs. Ameriprise Financial | ALLFUNDS GROUP vs. State Street |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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