Correlation Between CEO America and Stepstone

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

By analyzing existing cross correlation between CEO America and Stepstone Group, you can compare the effects of market volatilities on CEO America and Stepstone 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 CEO America with a short position of Stepstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEO America and Stepstone.

Diversification Opportunities for CEO America and Stepstone

0.32

Correlation Coefficient

CEO America  Stepstone

Weak diversification

The 3 months correlation between CEO and Stepstone is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding CEO America and Stepstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stepstone Group and CEO America 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 CEO America are associated (or correlated) with Stepstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stepstone Group has no effect on the direction of CEO America i.e., CEO America and Stepstone go up and down completely randomly.

Pair Corralation between CEO America and Stepstone

Given the investment horizon of 90 days CEO America is expected to generate 61.87 times more return on investment than Stepstone. However, CEO America is 61.87 times more volatile than Stepstone Group. It trades about 0.13 of its potential returns per unit of risk. Stepstone Group is currently generating about 0.07 per unit of risk. If you would invest  0.00  in CEO America on October 9, 2025 and sell it today you would earn a total of  0.00  from holding CEO America or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CEO America  vs.  Stepstone Group

CEO America

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CEO America are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, CEO America sustained solid returns over the last few months and may actually be approaching a breakup point.

Stepstone Group

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Stepstone Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady technical and fundamental indicators, Stepstone may actually be approaching a critical reversion point that can send shares even higher in February 2026.

Pair Trading with CEO America and Stepstone

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

The idea behind CEO America and Stepstone Group 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.