Correlation Between Sera Prognostics and Star Equity
Can any of the company-specific risk be diversified away by investing in both Sera Prognostics and Star Equity 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 Sera Prognostics and Star Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sera Prognostics and Star Equity Holdings, you can compare the effects of market volatilities on Sera Prognostics and Star Equity 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 Sera Prognostics with a short position of Star Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sera Prognostics and Star Equity.
Diversification Opportunities for Sera Prognostics and Star Equity
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sera and Star is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Sera Prognostics and Star Equity Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Equity Holdings and Sera Prognostics 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 Sera Prognostics are associated (or correlated) with Star Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Equity Holdings has no effect on the direction of Sera Prognostics i.e., Sera Prognostics and Star Equity go up and down completely randomly.
Pair Corralation between Sera Prognostics and Star Equity
Given the investment horizon of 90 days Sera Prognostics is expected to generate 2.04 times more return on investment than Star Equity. However, Sera Prognostics is 2.04 times more volatile than Star Equity Holdings. It trades about -0.09 of its potential returns per unit of risk. Star Equity Holdings is currently generating about -0.39 per unit of risk. If you would invest 795.00 in Sera Prognostics on September 4, 2024 and sell it today you would lose (120.00) from holding Sera Prognostics or give up 15.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sera Prognostics vs. Star Equity Holdings
Performance |
| Timeline |
| Sera Prognostics |
| Star Equity Holdings |
Sera Prognostics and Star Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sera Prognostics and Star Equity
The main advantage of trading using opposite Sera Prognostics and Star Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sera Prognostics position performs unexpectedly, Star Equity 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 Equity will offset losses from the drop in Star Equity's long position.| Sera Prognostics vs. Fonar | Sera Prognostics vs. Burning Rock Biotech | Sera Prognostics vs. Exagen Inc | Sera Prognostics vs. Sotera Health Co |
| Star Equity vs. Volitionrx | Star Equity vs. Biodesix | Star Equity vs. Fonar | Star Equity vs. Burning Rock Biotech |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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