Correlation Between Crossmark Steward and Steward Small-mid
Can any of the company-specific risk be diversified away by investing in both Crossmark Steward and Steward Small-mid 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 Crossmark Steward and Steward Small-mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crossmark Steward Equity and Steward Small Mid Cap, you can compare the effects of market volatilities on Crossmark Steward and Steward Small-mid 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 Crossmark Steward with a short position of Steward Small-mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crossmark Steward and Steward Small-mid.
Diversification Opportunities for Crossmark Steward and Steward Small-mid
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Crossmark and Steward is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Crossmark Steward Equity and Steward Small Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steward Small Mid and Crossmark Steward 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 Crossmark Steward Equity are associated (or correlated) with Steward Small-mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steward Small Mid has no effect on the direction of Crossmark Steward i.e., Crossmark Steward and Steward Small-mid go up and down completely randomly.
Pair Corralation between Crossmark Steward and Steward Small-mid
Assuming the 90 days horizon Crossmark Steward Equity is expected to under-perform the Steward Small-mid. But the mutual fund apears to be less risky and, when comparing its historical volatility, Crossmark Steward Equity is 2.36 times less risky than Steward Small-mid. The mutual fund trades about -0.29 of its potential returns per unit of risk. The Steward Small Mid Cap is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,376 in Steward Small Mid Cap on September 6, 2024 and sell it today you would earn a total of 96.00 from holding Steward Small Mid Cap or generate 6.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Crossmark Steward Equity vs. Steward Small Mid Cap
Performance |
Timeline |
Crossmark Steward Equity |
Steward Small Mid |
Crossmark Steward and Steward Small-mid Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Crossmark Steward and Steward Small-mid
The main advantage of trading using opposite Crossmark Steward and Steward Small-mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crossmark Steward position performs unexpectedly, Steward Small-mid 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 Steward Small-mid will offset losses from the drop in Steward Small-mid's long position.Crossmark Steward vs. Invesco Global Health | Crossmark Steward vs. Alger Health Sciences | Crossmark Steward vs. John Hancock Var | Crossmark Steward vs. Lord Abbett Health |
Steward Small-mid vs. Angel Oak Multi Strategy | Steward Small-mid vs. Arrow Managed Futures | Steward Small-mid vs. Artisan Emerging Markets | Steward Small-mid vs. Commodities Strategy Fund |
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.
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |