Correlation Between Nexxen International and Star Fashion
Can any of the company-specific risk be diversified away by investing in both Nexxen International 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 Nexxen International and Star Fashion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexxen International and Star Fashion Culture, you can compare the effects of market volatilities on Nexxen International 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 Nexxen International with a short position of Star Fashion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexxen International and Star Fashion.
Diversification Opportunities for Nexxen International and Star Fashion
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nexxen and Star is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Nexxen International 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 Nexxen International 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 Nexxen International 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 Nexxen International i.e., Nexxen International and Star Fashion go up and down completely randomly.
Pair Corralation between Nexxen International and Star Fashion
Given the investment horizon of 90 days Nexxen International is expected to generate 1.88 times less return on investment than Star Fashion. But when comparing it to its historical volatility, Nexxen International is 2.4 times less risky than Star Fashion. It trades about 0.13 of its potential returns per unit of risk. Star Fashion Culture is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Star Fashion Culture on August 27, 2024 and sell it today you would earn a total of 72.00 from holding Star Fashion Culture or generate 18.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 17.55% |
| Values | Daily Returns |
Nexxen International vs. Star Fashion Culture
Performance |
| Timeline |
| Nexxen International |
| Star Fashion Culture |
Nexxen International and Star Fashion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexxen International and Star Fashion
The main advantage of trading using opposite Nexxen International and Star Fashion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexxen International 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.| Nexxen International vs. Cardinal Health | Nexxen International vs. Genuine Parts Co | Nexxen International vs. Merit Medical Systems | Nexxen International vs. The Joint Corp |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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