Correlation Between Stone Ridge and Evaluator Growth

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

By analyzing existing cross correlation between Stone Ridge Diversified and Evaluator Growth Rms, you can compare the effects of market volatilities on Stone Ridge and Evaluator Growth 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 Stone Ridge with a short position of Evaluator Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Ridge and Evaluator Growth.

Diversification Opportunities for Stone Ridge and Evaluator Growth

0.82

Correlation Coefficient

Stone Ridge  Evaluator Growth

Very poor diversification

The 3 months correlation between Stone and Evaluator is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Stone Ridge Diversified and Evaluator Growth Rms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evaluator Growth Rms and Stone Ridge 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 Stone Ridge Diversified are associated (or correlated) with Evaluator Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evaluator Growth Rms has no effect on the direction of Stone Ridge i.e., Stone Ridge and Evaluator Growth go up and down completely randomly.

Pair Corralation between Stone Ridge and Evaluator Growth

Assuming the 90 days horizon Stone Ridge is expected to generate 3.49 times less return on investment than Evaluator Growth. But when comparing it to its historical volatility, Stone Ridge Diversified is 3.42 times less risky than Evaluator Growth. It trades about 0.23 of its potential returns per unit of risk. Evaluator Growth Rms is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  1,162  in Evaluator Growth Rms on May 8, 2025 and sell it today you would earn a total of  102.00  from holding Evaluator Growth Rms or generate 8.78% return on investment over 90 days.

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

Stone Ridge Diversified  vs.  Evaluator Growth Rms

Stone Ridge Diversified

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Stone Ridge Diversified are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Stone Ridge is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Evaluator Growth Rms

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Evaluator Growth Rms are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Evaluator Growth may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Stone Ridge and Evaluator Growth

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

The idea behind Stone Ridge Diversified and Evaluator Growth Rms 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.