Correlation Between CryptoStar Corp and Cathay Pacific
Can any of the company-specific risk be diversified away by investing in both CryptoStar Corp and Cathay Pacific 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 CryptoStar Corp and Cathay Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CryptoStar Corp and Cathay Pacific Airways, you can compare the effects of market volatilities on CryptoStar Corp and Cathay Pacific 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 CryptoStar Corp with a short position of Cathay Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of CryptoStar Corp and Cathay Pacific.
Diversification Opportunities for CryptoStar Corp and Cathay Pacific
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CryptoStar and Cathay is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding CryptoStar Corp and Cathay Pacific Airways in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay Pacific Airways and CryptoStar Corp 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 CryptoStar Corp are associated (or correlated) with Cathay Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay Pacific Airways has no effect on the direction of CryptoStar Corp i.e., CryptoStar Corp and Cathay Pacific go up and down completely randomly.
Pair Corralation between CryptoStar Corp and Cathay Pacific
Assuming the 90 days horizon CryptoStar Corp is expected to generate 4.09 times more return on investment than Cathay Pacific. However, CryptoStar Corp is 4.09 times more volatile than Cathay Pacific Airways. It trades about 0.04 of its potential returns per unit of risk. Cathay Pacific Airways is currently generating about 0.01 per unit of risk. If you would invest 2.61 in CryptoStar Corp on September 1, 2024 and sell it today you would lose (0.32) from holding CryptoStar Corp or give up 12.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 49.6% |
| Values | Daily Returns |
CryptoStar Corp vs. Cathay Pacific Airways
Performance |
| Timeline |
| CryptoStar Corp |
| Cathay Pacific Airways |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
CryptoStar Corp and Cathay Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CryptoStar Corp and Cathay Pacific
The main advantage of trading using opposite CryptoStar Corp and Cathay Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CryptoStar Corp position performs unexpectedly, Cathay Pacific 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 Cathay Pacific will offset losses from the drop in Cathay Pacific's long position.| CryptoStar Corp vs. Arcane Crypto AB | CryptoStar Corp vs. Cypherpunk Holdings | CryptoStar Corp vs. iMining Blockchain and | CryptoStar Corp vs. Helix Applications |
| Cathay Pacific vs. Finnair Oyj | Cathay Pacific vs. easyJet plc | Cathay Pacific vs. Norse Atlantic ASA | Cathay Pacific vs. Air New Zealand |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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