Correlation Between Cardlytics and Star Fashion
Can any of the company-specific risk be diversified away by investing in both Cardlytics and Star Fashion 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 Cardlytics and Star Fashion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardlytics and Star Fashion Culture, you can compare the effects of market volatilities on Cardlytics and Star Fashion 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 Cardlytics with a short position of Star Fashion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardlytics and Star Fashion.
Diversification Opportunities for Cardlytics and Star Fashion
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cardlytics and Star is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cardlytics and Star Fashion Culture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Fashion Culture and Cardlytics 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 Cardlytics are associated (or correlated) with Star Fashion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Fashion Culture has no effect on the direction of Cardlytics i.e., Cardlytics and Star Fashion go up and down completely randomly.
Pair Corralation between Cardlytics and Star Fashion
Given the investment horizon of 90 days Cardlytics is expected to generate 7.83 times less return on investment than Star Fashion. In addition to that, Cardlytics is 1.9 times more volatile than Star Fashion Culture. It trades about 0.02 of its total potential returns per unit of risk. Star Fashion Culture is currently generating about 0.3 per unit of volatility. If you would invest 374.00 in Star Fashion Culture on August 27, 2024 and sell it today you would earn a total of 98.00 from holding Star Fashion Culture or generate 26.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardlytics vs. Star Fashion Culture
Performance |
| Timeline |
| Cardlytics |
| Star Fashion Culture |
Cardlytics and Star Fashion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardlytics and Star Fashion
The main advantage of trading using opposite Cardlytics and Star Fashion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardlytics position performs unexpectedly, Star Fashion 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 Star Fashion will offset losses from the drop in Star Fashion's long position.| Cardlytics vs. Criteo Sa | Cardlytics vs. Deluxe | Cardlytics vs. Emerald Expositions Events | Cardlytics vs. Marchex |
| Star Fashion vs. WiMi Hologram Cloud | Star Fashion vs. National CineMedia | Star Fashion vs. Baosheng Media Group | Star Fashion vs. Aquagold International |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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