Correlation Between Stepstone and CEO America

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

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

Diversification Opportunities for Stepstone and CEO America

0.0

Correlation Coefficient

Stepstone  CEO America

Pay attention - limited upside

The 3 months correlation between Stepstone and CEO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stepstone Group and CEO America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEO America 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 CEO America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEO America has no effect on the direction of Stepstone i.e., Stepstone and CEO America go up and down completely randomly.

Pair Corralation between Stepstone and CEO America

If you would invest  6,153  in Stepstone Group on September 6, 2025 and sell it today you would earn a total of  88.00  from holding Stepstone Group or generate 1.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Stepstone Group  vs.  CEO America

Stepstone Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Stepstone Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, Stepstone is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

CEO America

Risk-Adjusted Performance

Weakest

Over the last 90 days CEO America has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, CEO America is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Stepstone and CEO America

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

The idea behind Stepstone Group and CEO America 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.