Correlation Between Stewart Information and Avidus Management

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Can any of the company-specific risk be diversified away by investing in both Stewart Information and Avidus Management 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 Stewart Information and Avidus Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stewart Information Services and Avidus Management Group, you can compare the effects of market volatilities on Stewart Information and Avidus Management 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 Stewart Information with a short position of Avidus Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stewart Information and Avidus Management.

Diversification Opportunities for Stewart Information and Avidus Management

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Stewart Information and Avidus Management

If you would invest  7,004  in Stewart Information Services on September 2, 2025 and sell it today you would earn a total of  659.00  from holding Stewart Information Services or generate 9.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Stewart Information Services  vs.  Avidus Management Group

 Performance 
       Timeline  
Stewart Information 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Stewart Information Services are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Stewart Information may actually be approaching a critical reversion point that can send shares even higher in January 2026.
Avidus Management 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Avidus Management Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, Avidus Management is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Stewart Information and Avidus Management Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Stewart Information and Avidus Management

The main advantage of trading using opposite Stewart Information and Avidus Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stewart Information position performs unexpectedly, Avidus Management 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 Avidus Management will offset losses from the drop in Avidus Management's long position.
The idea behind Stewart Information Services and Avidus Management Group 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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