Correlation Between Sui and Story

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

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

Diversification Opportunities for Sui and Story

0.9

Correlation Coefficient

Sui  Story

Almost no diversification

The 3 months correlation between Sui and Story is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sui and Story in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Story and Sui 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 Sui are associated (or correlated) with Story. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Story has no effect on the direction of Sui i.e., Sui and Story go up and down completely randomly.

Pair Corralation between Sui and Story

Assuming the 90 days trading horizon Sui is expected to generate 1.59 times less return on investment than Story. But when comparing it to its historical volatility, Sui is 1.21 times less risky than Story. It trades about 0.06 of its potential returns per unit of risk. Story is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  402.00  in Story on April 24, 2025 and sell it today you would earn a total of  98.00  from holding Story or generate 24.38% return on investment over 90 days.

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

Sui  vs.  Story

Sui

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sui are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady forward indicators, Sui exhibited solid returns over the last few months and may actually be approaching a breakup point.

Story

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Story are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Story exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sui and Story

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

The idea behind Sui and Story 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.