Correlation Between Pagaya Technologies and Starbox Group

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

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

Diversification Opportunities for Pagaya Technologies and Starbox Group

-0.18

Correlation Coefficient

Pagaya Technologies  Starbox Group

Good diversification

The 3 months correlation between Pagaya and Starbox is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Pagaya Technologies Ltd 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 Pagaya Technologies 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 Pagaya Technologies Ltd 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 Pagaya Technologies i.e., Pagaya Technologies and Starbox Group go up and down completely randomly.

Pair Corralation between Pagaya Technologies and Starbox Group

Assuming the 90 days horizon Pagaya Technologies Ltd is expected to under-perform the Starbox Group. In addition to that, Pagaya Technologies is 1.57 times more volatile than Starbox Group Holdings. It trades about -0.04 of its total potential returns per unit of risk. Starbox Group Holdings is currently generating about 0.02 per unit of volatility. If you would invest  222.00  in Starbox Group Holdings on September 22, 2024 and sell it today you would lose (27.00) from holding Starbox Group Holdings or give up 12.16% of portfolio value over 90 days.

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

Pagaya Technologies Ltd  vs.  Starbox Group Holdings

Pagaya Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pagaya Technologies Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

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 Pagaya Technologies and Starbox Group

The main advantage of trading using opposite Pagaya Technologies and Starbox Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pagaya Technologies 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 Pagaya Technologies Ltd 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.