Correlation Between Stepstone and Abacus Life,

Can any of the company-specific risk be diversified away by investing in both Stepstone and Abacus Life, 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 Stepstone and Abacus Life, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Stepstone Group and Abacus Life, 9875, you can compare the effects of market volatilities on Stepstone and Abacus Life, 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 Abacus Life,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepstone and Abacus Life,.

Diversification Opportunities for Stepstone and Abacus Life,

-0.21

Correlation Coefficient

Stepstone  Abacus Life,

Very good diversification

The 3 months correlation between Stepstone and Abacus is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Stepstone Group and Abacus Life, 9875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abacus Life, 9875 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 Abacus Life,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abacus Life, 9875 has no effect on the direction of Stepstone i.e., Stepstone and Abacus Life, go up and down completely randomly.

Pair Corralation between Stepstone and Abacus Life,

Given the investment horizon of 90 days Stepstone Group is expected to under-perform the Abacus Life,. But the stock apears to be less risky and, when comparing its historical volatility, Stepstone Group is 1.79 times less risky than Abacus Life,. The stock trades about -0.15 of its potential returns per unit of risk. The Abacus Life, 9875 is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  2,690  in Abacus Life, 9875 on October 4, 2024 and sell it today you would earn a total of  676.00  from holding Abacus Life, 9875 or generate 25.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Stepstone Group  vs.  Abacus Life, 9875

Stepstone Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stepstone Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Stepstone is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Abacus Life, 9875

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Abacus Life, 9875 are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, Abacus Life, disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Stepstone and Abacus Life,

The main advantage of trading using opposite Stepstone and Abacus Life, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepstone position performs unexpectedly, Abacus Life, 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 Abacus Life, will offset losses from the drop in Abacus Life,'s long position.

The idea behind Stepstone Group and Abacus Life, 9875 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.