Correlation Between CKX Lands and Star Holdings
Can any of the company-specific risk be diversified away by investing in both CKX Lands and Star Holdings 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 CKX Lands and Star Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CKX Lands and Star Holdings, you can compare the effects of market volatilities on CKX Lands and Star Holdings 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 CKX Lands with a short position of Star Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CKX Lands and Star Holdings.
Diversification Opportunities for CKX Lands and Star Holdings
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CKX and Star is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding CKX Lands and Star Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Holdings and CKX Lands 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 CKX Lands are associated (or correlated) with Star Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Holdings has no effect on the direction of CKX Lands i.e., CKX Lands and Star Holdings go up and down completely randomly.
Pair Corralation between CKX Lands and Star Holdings
Considering the 90-day investment horizon CKX Lands is expected to generate 0.87 times more return on investment than Star Holdings. However, CKX Lands is 1.15 times less risky than Star Holdings. It trades about -0.29 of its potential returns per unit of risk. Star Holdings is currently generating about -0.39 per unit of risk. If you would invest 1,349 in CKX Lands on August 24, 2024 and sell it today you would lose (98.00) from holding CKX Lands or give up 7.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 78.26% |
| Values | Daily Returns |
CKX Lands vs. Star Holdings
Performance |
| Timeline |
| CKX Lands |
| Star Holdings |
CKX Lands and Star Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CKX Lands and Star Holdings
The main advantage of trading using opposite CKX Lands and Star Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CKX Lands position performs unexpectedly, Star Holdings 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 Holdings will offset losses from the drop in Star Holdings' long position.| CKX Lands vs. PrimeEnergy | CKX Lands vs. MorningStar Partners, LP | CKX Lands vs. Magnolia Oil Gas | CKX Lands vs. Civitas Resources |
| Star Holdings vs. Origin Materials | Star Holdings vs. Inflection Point Acquisition | Star Holdings vs. Jacobs Solutions | Star Holdings vs. Eastman Chemical |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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