Correlation Between State Street and Altaba
Can any of the company-specific risk be diversified away by investing in both State Street and Altaba 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 Altaba 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 Altaba Inc, you can compare the effects of market volatilities on State Street and Altaba 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 Altaba. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Altaba.
Diversification Opportunities for State Street and Altaba
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between State and Altaba is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding State Street Corp and Altaba Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altaba Inc 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 Altaba. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altaba Inc has no effect on the direction of State Street i.e., State Street and Altaba go up and down completely randomly.
Pair Corralation between State Street and Altaba
If you would invest 7,444 in State Street Corp on January 26, 2024 and sell it today you would lose (15.00) from holding State Street Corp or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
State Street Corp vs. Altaba Inc
Performance |
| Timeline |
| State Street Corp |
| Altaba Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
State Street and Altaba Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Street and Altaba
The main advantage of trading using opposite State Street and Altaba positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street position performs unexpectedly, Altaba 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 Altaba will offset losses from the drop in Altaba's long position.| State Street vs. Invesco Plc | State Street vs. Franklin Resources | State Street vs. T Rowe Price | State Street vs. SEI Investments |
| Altaba vs. HF Sinclair Corp | Altaba vs. Pearson PLC ADR | Altaba vs. Pentair PLC | Altaba vs. Peoples Educational Holdings |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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