Correlation Between State Street and Ips Strategic

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

By analyzing existing cross correlation between State Street Smallmid and Ips Strategic Capital, you can compare the effects of market volatilities on State Street and Ips Strategic 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 Ips Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Ips Strategic.

Diversification Opportunities for State Street and Ips Strategic

0.96

Correlation Coefficient

State Street  Ips Strategic

Almost no diversification

The 3 months correlation between State and Ips is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding State Street Smallmid and Ips Strategic Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ips Strategic Capital 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 Smallmid are associated (or correlated) with Ips Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ips Strategic Capital has no effect on the direction of State Street i.e., State Street and Ips Strategic go up and down completely randomly.

Pair Corralation between State Street and Ips Strategic

Assuming the 90 days horizon State Street Smallmid is expected to generate 2.3 times more return on investment than Ips Strategic. However, State Street is 2.3 times more volatile than Ips Strategic Capital. It trades about 0.17 of its potential returns per unit of risk. Ips Strategic Capital is currently generating about 0.21 per unit of risk. If you would invest  30,752  in State Street Smallmid on May 25, 2025 and sell it today you would earn a total of  2,305  from holding State Street Smallmid or generate 7.5% 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 Smallmid  vs.  Ips Strategic Capital

State Street Smallmid

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in State Street Smallmid are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, State Street may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Ips Strategic Capital

Risk-Adjusted Performance

Solid

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

Pair Trading with State Street and Ips Strategic

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

The idea behind State Street Smallmid and Ips Strategic Capital 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.