Correlation Between ST Bancorp and Stellar Bancorp,
Can any of the company-specific risk be diversified away by investing in both ST Bancorp and Stellar Bancorp, 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 ST Bancorp and Stellar Bancorp, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ST Bancorp and Stellar Bancorp,, you can compare the effects of market volatilities on ST Bancorp and Stellar Bancorp, 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 ST Bancorp with a short position of Stellar Bancorp,. Check out your portfolio center. Please also check ongoing floating volatility patterns of ST Bancorp and Stellar Bancorp,.
Diversification Opportunities for ST Bancorp and Stellar Bancorp,
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between STBA and Stellar is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding ST Bancorp and Stellar Bancorp, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stellar Bancorp, and ST Bancorp 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 ST Bancorp are associated (or correlated) with Stellar Bancorp,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stellar Bancorp, has no effect on the direction of ST Bancorp i.e., ST Bancorp and Stellar Bancorp, go up and down completely randomly.
Pair Corralation between ST Bancorp and Stellar Bancorp,
Given the investment horizon of 90 days ST Bancorp is expected to generate 1.35 times more return on investment than Stellar Bancorp,. However, ST Bancorp is 1.35 times more volatile than Stellar Bancorp,. It trades about 0.23 of its potential returns per unit of risk. Stellar Bancorp, is currently generating about 0.01 per unit of risk. If you would invest 3,536 in ST Bancorp on August 23, 2025 and sell it today you would earn a total of 261.00 from holding ST Bancorp or generate 7.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ST Bancorp vs. Stellar Bancorp,
Performance |
| Timeline |
| ST Bancorp |
| Stellar Bancorp, |
ST Bancorp and Stellar Bancorp, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ST Bancorp and Stellar Bancorp,
The main advantage of trading using opposite ST Bancorp and Stellar Bancorp, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ST Bancorp position performs unexpectedly, Stellar Bancorp, 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 Stellar Bancorp, will offset losses from the drop in Stellar Bancorp,'s long position.| ST Bancorp vs. 1st Source | ST Bancorp vs. TriCo Bancshares | ST Bancorp vs. Lakeland Financial | ST Bancorp vs. Merchants Bancorp |
| Stellar Bancorp, vs. Lakeland Financial | Stellar Bancorp, vs. TriCo Bancshares | Stellar Bancorp, vs. German American Bancorp | Stellar Bancorp, vs. First Commonwealth Financial |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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