Correlation Between Starlight Global and First Asset
Can any of the company-specific risk be diversified away by investing in both Starlight Global and First Asset 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 Starlight Global and First Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Starlight Global Real and First Asset Energy, you can compare the effects of market volatilities on Starlight Global and First Asset 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 Starlight Global with a short position of First Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Starlight Global and First Asset.
Diversification Opportunities for Starlight Global and First Asset
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Starlight and First is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Starlight Global Real and First Asset Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Asset Energy and Starlight Global 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 Starlight Global Real are associated (or correlated) with First Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Asset Energy has no effect on the direction of Starlight Global i.e., Starlight Global and First Asset go up and down completely randomly.
Pair Corralation between Starlight Global and First Asset
Assuming the 90 days trading horizon Starlight Global Real is expected to generate 0.7 times more return on investment than First Asset. However, Starlight Global Real is 1.42 times less risky than First Asset. It trades about 0.07 of its potential returns per unit of risk. First Asset Energy is currently generating about 0.02 per unit of risk. If you would invest 767.00 in Starlight Global Real on September 4, 2024 and sell it today you would earn a total of 98.00 from holding Starlight Global Real or generate 12.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Starlight Global Real vs. First Asset Energy
Performance |
| Timeline |
| Starlight Global Real |
| First Asset Energy |
Starlight Global and First Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Starlight Global and First Asset
The main advantage of trading using opposite Starlight Global and First Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Starlight Global position performs unexpectedly, First Asset 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 First Asset will offset losses from the drop in First Asset's long position.| Starlight Global vs. Starlight Dividend Growth | Starlight Global vs. Starlight Global Infrastructure | Starlight Global vs. NBI High Yield | Starlight Global vs. NBI Unconstrained Fixed |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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