Correlation Between Stellus Capital and Consumer Portfolio

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

By analyzing existing cross correlation between Stellus Capital Investment and Consumer Portfolio Services, you can compare the effects of market volatilities on Stellus Capital and Consumer Portfolio 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 Stellus Capital with a short position of Consumer Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stellus Capital and Consumer Portfolio.

Diversification Opportunities for Stellus Capital and Consumer Portfolio

0.0

Correlation Coefficient

Stellus Capital  Consumer Portfolio

Pay attention - limited upside

The 3 months correlation between Stellus and Consumer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stellus Capital Investment and Consumer Portfolio Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consumer Portfolio and Stellus Capital 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 Stellus Capital Investment are associated (or correlated) with Consumer Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consumer Portfolio has no effect on the direction of Stellus Capital i.e., Stellus Capital and Consumer Portfolio go up and down completely randomly.

Pair Corralation between Stellus Capital and Consumer Portfolio

Considering the 90-day investment horizon Stellus Capital Investment is expected to generate 0.46 times more return on investment than Consumer Portfolio. However, Stellus Capital Investment is 2.16 times less risky than Consumer Portfolio. It trades about 0.16 of its potential returns per unit of risk. Consumer Portfolio Services is currently generating about -0.12 per unit of risk. If you would invest  1,278  in Stellus Capital Investment on May 9, 2025 and sell it today you would earn a total of  128.00  from holding Stellus Capital Investment or generate 10.02% return on investment over 90 days.

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

Stellus Capital Investment  vs.  Consumer Portfolio Services

Stellus Capital Inve

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Stellus Capital Investment are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental indicators, Stellus Capital may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Consumer Portfolio

Risk-Adjusted Performance

Weakest

Over the last 90 days Consumer Portfolio Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Stellus Capital and Consumer Portfolio

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

The idea behind Stellus Capital Investment and Consumer Portfolio Services 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.