Correlation Between Star Media and EA Technique
Can any of the company-specific risk be diversified away by investing in both Star Media and EA Technique 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 Star Media and EA Technique into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Media Group and EA Technique M, you can compare the effects of market volatilities on Star Media and EA Technique 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 Star Media with a short position of EA Technique. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Media and EA Technique.
Diversification Opportunities for Star Media and EA Technique
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Star and 5259 is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Star Media Group and EA Technique M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Technique M and Star Media 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 Star Media Group are associated (or correlated) with EA Technique. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Technique M has no effect on the direction of Star Media i.e., Star Media and EA Technique go up and down completely randomly.
Pair Corralation between Star Media and EA Technique
Assuming the 90 days trading horizon Star Media Group is expected to generate 1.68 times more return on investment than EA Technique. However, Star Media is 1.68 times more volatile than EA Technique M. It trades about 0.07 of its potential returns per unit of risk. EA Technique M is currently generating about 0.0 per unit of risk. If you would invest 40.00 in Star Media Group on August 30, 2024 and sell it today you would earn a total of 1.00 from holding Star Media Group or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Star Media Group vs. EA Technique M
Performance |
| Timeline |
| Star Media Group |
| EA Technique M |
Star Media and EA Technique Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Media and EA Technique
The main advantage of trading using opposite Star Media and EA Technique positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Media position performs unexpectedly, EA Technique 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 EA Technique will offset losses from the drop in EA Technique's long position.| Star Media vs. Hong Leong Bank | Star Media vs. Cloudpoint Technology Berhad | Star Media vs. Eonmetall Group Bhd | Star Media vs. YX Precious Metals |
| EA Technique vs. Digistar Bhd | EA Technique vs. Tambun Indah Land | EA Technique vs. Insas Bhd | EA Technique vs. Kumpulan Kitacon Berhad |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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