Correlation Between Starbox Group and Perion Network
Can any of the company-specific risk be diversified away by investing in both Starbox Group and Perion Network 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 Starbox Group and Perion Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Starbox Group Holdings and Perion Network, you can compare the effects of market volatilities on Starbox Group and Perion Network 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 Starbox Group with a short position of Perion Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Starbox Group and Perion Network.
Diversification Opportunities for Starbox Group and Perion Network
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Starbox and Perion is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Starbox Group Holdings and Perion Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perion Network and Starbox Group 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 Starbox Group Holdings are associated (or correlated) with Perion Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perion Network has no effect on the direction of Starbox Group i.e., Starbox Group and Perion Network go up and down completely randomly.
Pair Corralation between Starbox Group and Perion Network
Given the investment horizon of 90 days Starbox Group Holdings is expected to generate 5.37 times more return on investment than Perion Network. However, Starbox Group is 5.37 times more volatile than Perion Network. It trades about 0.06 of its potential returns per unit of risk. Perion Network is currently generating about 0.1 per unit of risk. If you would invest 120.00 in Starbox Group Holdings on September 3, 2024 and sell it today you would earn a total of 2.00 from holding Starbox Group Holdings or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Starbox Group Holdings vs. Perion Network
Performance |
| Timeline |
| Starbox Group Holdings |
| Perion Network |
Starbox Group and Perion Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Starbox Group and Perion Network
The main advantage of trading using opposite Starbox Group and Perion Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Starbox Group position performs unexpectedly, Perion Network 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 Perion Network will offset losses from the drop in Perion Network's long position.| Starbox Group vs. Onfolio Holdings | Starbox Group vs. MediaAlpha | Starbox Group vs. Asset Entities Class | Starbox Group vs. Yelp Inc |
| Perion Network vs. MediaAlpha | Perion Network vs. Vivid Seats | Perion Network vs. Jiayin Group | Perion Network vs. Hello Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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