Correlation Between Stepstone and Maplebear

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

By analyzing existing cross correlation between Stepstone Group and Maplebear, you can compare the effects of market volatilities on Stepstone and Maplebear 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 Stepstone with a short position of Maplebear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepstone and Maplebear.

Diversification Opportunities for Stepstone and Maplebear

0.83

Correlation Coefficient

Stepstone  Maplebear

Very poor diversification

The 3 months correlation between Stepstone and Maplebear is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Stepstone Group and Maplebear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maplebear and Stepstone 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 Stepstone Group are associated (or correlated) with Maplebear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maplebear has no effect on the direction of Stepstone i.e., Stepstone and Maplebear go up and down completely randomly.

Pair Corralation between Stepstone and Maplebear

Given the investment horizon of 90 days Stepstone Group is expected to generate 0.83 times more return on investment than Maplebear. However, Stepstone Group is 1.21 times less risky than Maplebear. It trades about 0.18 of its potential returns per unit of risk. Maplebear is currently generating about 0.14 per unit of risk. If you would invest  4,965  in Stepstone Group on April 29, 2025 and sell it today you would earn a total of  1,223  from holding Stepstone Group or generate 24.63% return on investment over 90 days.

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

Stepstone Group  vs.  Maplebear

Stepstone Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Stepstone Group are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady technical and fundamental indicators, Stepstone reported solid returns over the last few months and may actually be approaching a breakup point.

Maplebear

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Maplebear are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Maplebear unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Stepstone and Maplebear

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

The idea behind Stepstone Group and Maplebear 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.