Correlation Between State Street and Evaluator Aggressive

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

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

Diversification Opportunities for State Street and Evaluator Aggressive

1.0

Correlation Coefficient

State Street  Evaluator Aggressive

No risk reduction

The 3 months correlation between State and Evaluator is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding State Street Target and Evaluator Aggressive Rms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evaluator Aggressive Rms and State Street 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 State Street Target are associated (or correlated) with Evaluator Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evaluator Aggressive Rms has no effect on the direction of State Street i.e., State Street and Evaluator Aggressive go up and down completely randomly.

Pair Corralation between State Street and Evaluator Aggressive

Assuming the 90 days horizon State Street Target is expected to generate 0.96 times more return on investment than Evaluator Aggressive. However, State Street Target is 1.04 times less risky than Evaluator Aggressive. It trades about 0.07 of its potential returns per unit of risk. Evaluator Aggressive Rms is currently generating about 0.06 per unit of risk. If you would invest  1,461  in State Street Target on April 29, 2025 and sell it today you would earn a total of  297.00  from holding State Street Target or generate 20.33% return on investment over 90 days.

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

State Street Target  vs.  Evaluator Aggressive Rms

State Street Target

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in State Street Target are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, State Street may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Evaluator Aggressive Rms

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Evaluator Aggressive Rms are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Evaluator Aggressive may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with State Street and Evaluator Aggressive

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

The idea behind State Street Target and Evaluator Aggressive 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.

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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.