STT vs. PSEC

Last updated Jun 4, 2026

STT (State Street Corporation) and PSEC (Prospect Capital Corporation) are both stocks. Both operate in the Asset Management industry within the Financial Services sector. Over the past 10 years, STT returned 13.18%/yr vs -0.06%/yr for PSEC. At a 0.39 correlation, their price movements are largely independent.

Performance

STT vs. PSEC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Corporation (STT) and Prospect Capital Corporation (PSEC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, STT achieves a 24.00% return, which is significantly higher than PSEC's -5.36% return. Over the past 10 years, STT has outperformed PSEC with an annualized return of 13.18%, while PSEC has yielded a comparatively lower -0.06% annualized return.

STT

• 1D: -1.19%
• 1M: 6.62%
• YTD: 24.00%
• 6M: 32.32%
• 1Y: 67.31%
• 3Y*: 34.54%
• 5Y*: 16.34%
• 10Y*: 13.18%

PSEC

• 1D: -6.61%
• 1M: -15.64%
• YTD: -5.36%
• 6M: -5.64%
• 1Y: -15.41%
• 3Y*: -17.37%
• 5Y*: -13.64%
• 10Y*: -0.06%

*Multi-year figures are annualized to reflect compound growth (CAGR)

STT vs. PSEC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
STT State Street Corporation	24.00%	35.54%	30.18%	3.54%	-13.75%	31.03%	-4.76%	29.35%	-33.97%	27.84%
PSEC Prospect Capital Corporation	-5.36%	-28.86%	-18.16%	-4.13%	-8.61%	70.00%	-3.54%	13.83%	4.09%	-9.44%

Correlation

The correlation between STT and PSEC is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.30
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (5Y) Calculated over the trailing 5-year period	0.43
Correlation (10Y) Calculated over the trailing 10-year period	0.39
Correlation (All Time) Calculated using the full available price history since Jul 28, 2004	0.39

The correlation between STT and PSEC shifts across timeframes, from 0.30 (1 year) to 0.43 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

EPS STT : $10.18 PSEC : -$0.28
PS Ratio STT : 2.02 PSEC : 5.09
Total Revenue (TTM) STT : $22.63B PSEC : $151.90M
Gross Profit (TTM) STT : $13.89B PSEC : -$59.07M
EBITDA (TTM) STT : $4.29B PSEC : -$94.23M

Return for Risk

STT vs. PSEC — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

STT

STT Risk / Return Rank: 92
STT Sharpe Ratio Rank: 93
STT Sortino Ratio Rank: 89
STT Omega Ratio Rank: 90
STT Calmar Ratio Rank: 93
STT Martin Ratio Rank: 94

PSEC

PSEC Risk / Return Rank: 20
PSEC Sharpe Ratio Rank: 21
PSEC Sortino Ratio Rank: 20
PSEC Omega Ratio Rank: 21
PSEC Calmar Ratio Rank: 20
PSEC Martin Ratio Rank: 18

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

STT vs. PSEC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Corporation (STT) and Prospect Capital Corporation (PSEC). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	STT	PSEC	Difference
Sharpe ratio: Return per unit of total volatility	2.72	-0.46	+3.18
Sortino ratio: Return per unit of downside risk	3.11	-0.47	+3.58
Omega ratio: Gain probability vs. loss probability	1.44	0.94	+0.49
Calmar ratio: Return relative to maximum drawdown	5.74	-0.57	+6.31
Martin ratio: Return relative to average drawdown	17.46	-1.06	+18.52
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

STT vs. PSEC - Sharpe Ratio Comparison

The current STT Sharpe Ratio is 2.72, which is higher than the PSEC Sharpe Ratio of -0.46. The chart below compares the historical Sharpe Ratios of STT and PSEC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	STT	PSEC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.72	-0.46	+3.18
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.54	-0.49	+1.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.40	-0.00	+0.40
Sharpe Ratio (All Time) Calculated using the full available price history	0.31	0.08	+0.23

Drawdowns

STT vs. PSEC - Drawdown Comparison

The maximum STT drawdown since its inception was -82.26%, which is greater than PSEC's maximum drawdown of -61.51%. Use the drawdown chart below to compare losses from any high point for STT and PSEC.

Drawdown Indicators

	STT	PSEC	Difference
Max Drawdown Largest peak-to-trough decline	-82.26%	-61.51%	-20.75%
Max Drawdown (1Y) Largest decline over 1 year	-11.79%	-27.04%	+15.25%
Max Drawdown (3Y) Largest decline over 3 years	-25.68%	-50.64%	+24.96%
Max Drawdown (5Y) Largest decline over 5 years	-41.45%	-57.21%	+15.76%
Max Drawdown (10Y) Largest decline over 10 years	-59.59%	-57.21%	-2.38%
Current Drawdown Current decline from peak	-1.20%	-54.34%	+53.14%
Average Drawdown Average peak-to-trough decline	-20.48%	-15.60%	-4.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.87%	14.57%	-10.70%

Volatility

STT vs. PSEC - Volatility Comparison

The current volatility for State Street Corporation (STT) is 6.00%, while Prospect Capital Corporation (PSEC) has a volatility of 15.55%. This indicates that STT experiences smaller price fluctuations and is considered to be less risky than PSEC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	STT	PSEC	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.00%	15.55%	-9.55%
Volatility (6M) Calculated over the trailing 6-month period	18.31%	27.33%	-9.02%
Volatility (1Y) Calculated over the trailing 1-year period	24.85%	33.80%	-8.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.42%	28.07%	+2.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.92%	27.36%	+5.56%

Dividends

STT vs. PSEC - Dividend Comparison

STT's dividend yield for the trailing twelve months is around 2.08%, less than PSEC's 23.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSEC Prospect Capital Corporation	23.45%	20.85%	16.01%	12.02%	10.30%	8.56%	13.31%	11.18%	11.41%	13.45%	11.98%	14.72%
STT State Street Corporation	2.08%	2.42%	2.18%	3.41%	3.09%	2.34%	2.86%	2.50%	2.82%	1.64%	1.85%	1.99%

Financials

STT vs. PSEC - Profitability Comparison

The chart below illustrates the profitability comparison between State Street Corporation and Prospect Capital Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

STT - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, State Street Corporation reported a gross profit of 3.64B and revenue of 5.59B. Therefore, the gross margin over that period was 65.1%.

PSEC - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Prospect Capital Corporation reported a gross profit of 0.00 and revenue of 123.07M. Therefore, the gross margin over that period was 0.0%.

STT - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, State Street Corporation reported an operating income of 918.00M and revenue of 5.59B, resulting in an operating margin of 16.4%.

PSEC - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Prospect Capital Corporation reported an operating income of 0.00 and revenue of 123.07M, resulting in an operating margin of 0.0%.

STT - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, State Street Corporation reported a net income of 747.00M and revenue of 5.59B, resulting in a net margin of 13.4%.

PSEC - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Prospect Capital Corporation reported a net income of 0.00 and revenue of 123.07M, resulting in a net margin of 0.0%.

Frequently Asked Questions

Can I hold both STT and PSEC in my portfolio?

STT and PSEC have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, STT or PSEC?

PSEC has higher volatility (15.55%) compared to STT (6.00%). In terms of maximum drawdown, STT dropped -82.26% vs PSEC's -61.51%.

Which has better risk-adjusted returns?

STT currently has the higher Sharpe Ratio (2.72 vs -0.46), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.