Correlation Between State Street and Star Equity
Can any of the company-specific risk be diversified away by investing in both State Street and Star Equity 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 Star Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street Corp and Star Equity Holdings, you can compare the effects of market volatilities on State Street and Star Equity 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 Star Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Star Equity.
Diversification Opportunities for State Street and Star Equity
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between State and Star is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding State Street Corp and Star Equity Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Equity Holdings 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 Corp are associated (or correlated) with Star Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Equity Holdings has no effect on the direction of State Street i.e., State Street and Star Equity go up and down completely randomly.
Pair Corralation between State Street and Star Equity
If you would invest 7,348 in State Street Corp on December 29, 2023 and sell it today you would earn a total of 371.00 from holding State Street Corp or generate 5.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
State Street Corp vs. Star Equity Holdings
Performance |
Timeline |
State Street Corp |
Star Equity Holdings |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
State Street and Star Equity Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with State Street and Star Equity
The main advantage of trading using opposite State Street and Star Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street position performs unexpectedly, Star Equity 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 Star Equity will offset losses from the drop in Star Equity's long position.State Street vs. Relx PLC ADR | State Street vs. Universal Technical Institute | State Street vs. Lincoln Educational Services | State Street vs. Ecolab Inc |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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