Correlation Between Star Fashion and ZW Data
Can any of the company-specific risk be diversified away by investing in both Star Fashion and ZW Data 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 Star Fashion and ZW Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Fashion Culture and ZW Data Action, you can compare the effects of market volatilities on Star Fashion and ZW Data 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 Star Fashion with a short position of ZW Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Fashion and ZW Data.
Diversification Opportunities for Star Fashion and ZW Data
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Star and CNET is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Star Fashion Culture and ZW Data Action in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZW Data Action and Star Fashion 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 Star Fashion Culture are associated (or correlated) with ZW Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZW Data Action has no effect on the direction of Star Fashion i.e., Star Fashion and ZW Data go up and down completely randomly.
Pair Corralation between Star Fashion and ZW Data
Given the investment horizon of 90 days Star Fashion Culture is expected to generate 0.88 times more return on investment than ZW Data. However, Star Fashion Culture is 1.13 times less risky than ZW Data. It trades about -0.06 of its potential returns per unit of risk. ZW Data Action is currently generating about -0.07 per unit of risk. If you would invest 15.00 in Star Fashion Culture on November 30, 2025 and sell it today you would lose (5.70) from holding Star Fashion Culture or give up 38.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Star Fashion Culture vs. ZW Data Action
Performance |
| Timeline |
| Star Fashion Culture |
| ZW Data Action |
Star Fashion and ZW Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Fashion and ZW Data
The main advantage of trading using opposite Star Fashion and ZW Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Fashion position performs unexpectedly, ZW Data 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 ZW Data will offset losses from the drop in ZW Data's long position.| Star Fashion vs. Cheer Holding | Star Fashion vs. Zeta Network Group | Star Fashion vs. Cumulus Media Class | Star Fashion vs. BuzzFeed |
| ZW Data vs. Baosheng Media Group | ZW Data vs. Cheetah Mobile | ZW Data vs. Onfolio Holdings | ZW Data vs. Star Fashion Culture |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |