Correlation Between SRAX and Glory Star

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

By analyzing existing cross correlation between SRAX Inc and Glory Star New, you can compare the effects of market volatilities on SRAX and Glory Star 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 SRAX with a short position of Glory Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of SRAX and Glory Star.

Diversification Opportunities for SRAX and Glory Star

-0.32

Correlation Coefficient

SRAX  Glory Star

Very good diversification

The 3 months correlation between SRAX and Glory is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding SRAX Inc and Glory Star New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glory Star New and SRAX 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 SRAX Inc are associated (or correlated) with Glory Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glory Star New has no effect on the direction of SRAX i.e., SRAX and Glory Star go up and down completely randomly.

Pair Corralation between SRAX and Glory Star

If you would invest  50.00  in Glory Star New on September 13, 2024 and sell it today you would earn a total of  0.00  from holding Glory Star New 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

SRAX Inc  vs.  Glory Star New

SRAX Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SRAX Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, SRAX is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Glory Star New

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Glory Star New has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Glory Star is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SRAX and Glory Star

The main advantage of trading using opposite SRAX and Glory Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SRAX position performs unexpectedly, Glory Star 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 Glory Star will offset losses from the drop in Glory Star's long position.

The idea behind SRAX Inc and Glory Star New 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.