Correlation Between Intelligent Living and Starbox Group

Can any of the company-specific risk be diversified away by investing in both Intelligent Living 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 Intelligent Living and Starbox Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intelligent Living Application and Starbox Group Holdings, you can compare the effects of market volatilities on Intelligent Living 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 Intelligent Living with a short position of Starbox Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intelligent Living and Starbox Group.

Diversification Opportunities for Intelligent Living and Starbox Group

0.08

Correlation Coefficient

Intelligent Living  Starbox Group

Significant diversification

The 3 months correlation between Intelligent and Starbox is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Intelligent Living Application 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 Intelligent Living 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 Intelligent Living Application 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 Intelligent Living i.e., Intelligent Living and Starbox Group go up and down completely randomly.

Pair Corralation between Intelligent Living and Starbox Group

Given the investment horizon of 90 days Intelligent Living Application is expected to under-perform the Starbox Group. But the stock apears to be less risky and, when comparing its historical volatility, Intelligent Living Application is 1.75 times less risky than Starbox Group. The stock trades about -0.1 of its potential returns per unit of risk. The Starbox Group Holdings is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest  124.00  in Starbox Group Holdings on September 22, 2024 and sell it today you would earn a total of  71.00  from holding Starbox Group Holdings or generate 57.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Intelligent Living Application  vs.  Starbox Group Holdings

Intelligent Living

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intelligent Living Application has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Starbox Group Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Starbox Group Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating fundamental drivers, Starbox Group showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intelligent Living and Starbox Group

The main advantage of trading using opposite Intelligent Living and Starbox Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intelligent Living 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 Intelligent Living Application 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.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.