Correlation Between Cheer Holding and Color Star
Can any of the company-specific risk be diversified away by investing in both Cheer Holding and Color Star 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 Cheer Holding and Color Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cheer Holding and Color Star Technology, you can compare the effects of market volatilities on Cheer Holding and Color Star 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 Cheer Holding with a short position of Color Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheer Holding and Color Star.
Diversification Opportunities for Cheer Holding and Color Star
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cheer and Color is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cheer Holding and Color Star Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Color Star Technology and Cheer Holding 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 Cheer Holding are associated (or correlated) with Color Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Color Star Technology has no effect on the direction of Cheer Holding i.e., Cheer Holding and Color Star go up and down completely randomly.
Pair Corralation between Cheer Holding and Color Star
Considering the 90-day investment horizon Cheer Holding is expected to generate 0.19 times more return on investment than Color Star. However, Cheer Holding is 5.26 times less risky than Color Star. It trades about -0.46 of its potential returns per unit of risk. Color Star Technology is currently generating about -0.46 per unit of risk. If you would invest 301.00 in Cheer Holding on August 26, 2024 and sell it today you would lose (56.00) from holding Cheer Holding or give up 18.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cheer Holding vs. Color Star Technology
Performance |
| Timeline |
| Cheer Holding |
| Color Star Technology |
Cheer Holding and Color Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheer Holding and Color Star
The main advantage of trading using opposite Cheer Holding and Color Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheer Holding position performs unexpectedly, Color Star 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 Color Star will offset losses from the drop in Color Star's long position.| Cheer Holding vs. Mirriad Advertising plc | Cheer Holding vs. INEO Tech Corp | Cheer Holding vs. Innovid Corp | Cheer Holding vs. Townsquare Media |
| Color Star vs. ADTRAN Inc | Color Star vs. Belden Inc | Color Star vs. ADC Therapeutics SA | Color Star vs. Comtech Telecommunications Corp |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |