Correlation Between Crossmark Steward and Morningstar International

Can any of the company-specific risk be diversified away by investing in both Crossmark Steward and Morningstar International 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 Morningstar International 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 Morningstar International Equity, you can compare the effects of market volatilities on Crossmark Steward and Morningstar International 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 Morningstar International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crossmark Steward and Morningstar International.

Diversification Opportunities for Crossmark Steward and Morningstar International

-0.78

Correlation Coefficient

Crossmark Steward  Morningstar International

Pay attention - limited upside

The 3 months correlation between Crossmark and Morningstar is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Crossmark Steward Equity and Morningstar International Equi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morningstar International 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 Morningstar International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morningstar International has no effect on the direction of Crossmark Steward i.e., Crossmark Steward and Morningstar International go up and down completely randomly.

Pair Corralation between Crossmark Steward and Morningstar International

Assuming the 90 days horizon Crossmark Steward Equity is expected to under-perform the Morningstar International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Crossmark Steward Equity is 1.17 times less risky than Morningstar International. The mutual fund trades about -0.13 of its potential returns per unit of risk. The Morningstar International Equity is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,083  in Morningstar International Equity on May 4, 2025 and sell it today you would earn a total of  59.00  from holding Morningstar International Equity or generate 5.45% return on investment over 90 days.

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

Crossmark Steward Equity  vs.  Morningstar International Equi

Crossmark Steward Equity

Risk-Adjusted Performance

Very Weak

Over the last 90 days Crossmark Steward Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Crossmark Steward is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Morningstar International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Morningstar International Equity are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Morningstar International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Crossmark Steward and Morningstar International

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

The idea behind Crossmark Steward Equity and Morningstar International Equity 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.