Correlation Between Yunji and Starbox Group
Can any of the company-specific risk be diversified away by investing in both Yunji and Starbox Group 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 Yunji and Starbox Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yunji Inc and Starbox Group Holdings, you can compare the effects of market volatilities on Yunji and Starbox Group 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 Yunji with a short position of Starbox Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunji and Starbox Group.
Diversification Opportunities for Yunji and Starbox Group
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yunji and Starbox is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Yunji Inc and Starbox Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starbox Group Holdings and Yunji 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 Yunji Inc are associated (or correlated) with Starbox Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starbox Group Holdings has no effect on the direction of Yunji i.e., Yunji and Starbox Group go up and down completely randomly.
Pair Corralation between Yunji and Starbox Group
Allowing for the 90-day total investment horizon Yunji Inc is expected to generate 0.47 times more return on investment than Starbox Group. However, Yunji Inc is 2.14 times less risky than Starbox Group. It trades about 0.06 of its potential returns per unit of risk. Starbox Group Holdings is currently generating about -0.48 per unit of risk. If you would invest 180.00 in Yunji Inc on November 28, 2024 and sell it today you would earn a total of 6.00 from holding Yunji Inc or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunji Inc vs. Starbox Group Holdings
Performance |
| Timeline |
| Yunji Inc |
| Starbox Group Holdings |
Yunji and Starbox Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunji and Starbox Group
The main advantage of trading using opposite Yunji and Starbox Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunji position performs unexpectedly, Starbox Group 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 Starbox Group will offset losses from the drop in Starbox Group's long position.The idea behind Yunji Inc and Starbox Group Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Starbox Group vs. Onfolio Holdings | Starbox Group vs. MediaAlpha | Starbox Group vs. Asset Entities Class | Starbox Group vs. Yelp Inc |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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