Correlation Between Softstar Entertainment and Fun Yours
Can any of the company-specific risk be diversified away by investing in both Softstar Entertainment and Fun Yours 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 Softstar Entertainment and Fun Yours into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Softstar Entertainment and Fun Yours Technology, you can compare the effects of market volatilities on Softstar Entertainment and Fun Yours 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 Softstar Entertainment with a short position of Fun Yours. Check out your portfolio center. Please also check ongoing floating volatility patterns of Softstar Entertainment and Fun Yours.
Diversification Opportunities for Softstar Entertainment and Fun Yours
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Softstar and Fun is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Softstar Entertainment and Fun Yours Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fun Yours Technology and Softstar Entertainment 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 Softstar Entertainment are associated (or correlated) with Fun Yours. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fun Yours Technology has no effect on the direction of Softstar Entertainment i.e., Softstar Entertainment and Fun Yours go up and down completely randomly.
Pair Corralation between Softstar Entertainment and Fun Yours
Assuming the 90 days trading horizon Softstar Entertainment is expected to under-perform the Fun Yours. But the stock apears to be less risky and, when comparing its historical volatility, Softstar Entertainment is 23.24 times less risky than Fun Yours. The stock trades about -0.06 of its potential returns per unit of risk. The Fun Yours Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,478 in Fun Yours Technology on August 28, 2024 and sell it today you would earn a total of 1,552 from holding Fun Yours Technology or generate 44.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Softstar Entertainment vs. Fun Yours Technology
Performance |
| Timeline |
| Softstar Entertainment |
| Fun Yours Technology |
Softstar Entertainment and Fun Yours Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Softstar Entertainment and Fun Yours
The main advantage of trading using opposite Softstar Entertainment and Fun Yours positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Softstar Entertainment position performs unexpectedly, Fun Yours 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 Fun Yours will offset losses from the drop in Fun Yours' long position.| Softstar Entertainment vs. International Games System | Softstar Entertainment vs. X Legend Entertainment Co | Softstar Entertainment vs. Fun Yours Technology |
| Fun Yours vs. ABC Taiwan Electronics | Fun Yours vs. Chander Electronics Corp | Fun Yours vs. U Media Communications | Fun Yours vs. Advanced Wireless Semiconductor |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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