Correlation Between Starbox Group and Pagaya Technologies
Can any of the company-specific risk be diversified away by investing in both Starbox Group and Pagaya Technologies 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 Pagaya Technologies 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 Pagaya Technologies Ltd, you can compare the effects of market volatilities on Starbox Group and Pagaya Technologies 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 Pagaya Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Starbox Group and Pagaya Technologies.
Diversification Opportunities for Starbox Group and Pagaya Technologies
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Starbox and Pagaya is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Starbox Group Holdings and Pagaya Technologies Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pagaya Technologies 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 Pagaya Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pagaya Technologies has no effect on the direction of Starbox Group i.e., Starbox Group and Pagaya Technologies go up and down completely randomly.
Pair Corralation between Starbox Group and Pagaya Technologies
Given the investment horizon of 90 days Starbox Group Holdings is expected to under-perform the Pagaya Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Starbox Group Holdings is 1.46 times less risky than Pagaya Technologies. The stock trades about -0.06 of its potential returns per unit of risk. The Pagaya Technologies Ltd is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Pagaya Technologies Ltd on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Pagaya Technologies Ltd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Starbox Group Holdings vs. Pagaya Technologies Ltd
Performance |
| Timeline |
| Starbox Group Holdings |
| Pagaya Technologies |
Starbox Group and Pagaya Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Starbox Group and Pagaya Technologies
The main advantage of trading using opposite Starbox Group and Pagaya Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Starbox Group position performs unexpectedly, Pagaya Technologies 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 Pagaya Technologies will offset losses from the drop in Pagaya Technologies' long position.| Starbox Group vs. Onfolio Holdings | Starbox Group vs. MediaAlpha | Starbox Group vs. Asset Entities Class | Starbox Group vs. Yelp Inc |
| Pagaya Technologies vs. Pagaya Technologies | Pagaya Technologies vs. Thayer Ventures Acquisition | Pagaya Technologies vs. Revelation Biosciences |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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