Correlation Between Star Equity and Escalon Medical
Can any of the company-specific risk be diversified away by investing in both Star Equity and Escalon Medical 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 Equity and Escalon Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Equity Holdings and Escalon Medical Corp, you can compare the effects of market volatilities on Star Equity and Escalon Medical 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 Equity with a short position of Escalon Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Equity and Escalon Medical.
Diversification Opportunities for Star Equity and Escalon Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Star and Escalon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Star Equity Holdings and Escalon Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Escalon Medical Corp and Star Equity 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 Equity Holdings are associated (or correlated) with Escalon Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Escalon Medical Corp has no effect on the direction of Star Equity i.e., Star Equity and Escalon Medical go up and down completely randomly.
Pair Corralation between Star Equity and Escalon Medical
If you would invest (100.00) in Star Equity Holdings on January 31, 2024 and sell it today you would earn a total of 100.00 from holding Star Equity Holdings or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Star Equity Holdings vs. Escalon Medical Corp
Performance |
Timeline |
Star Equity Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Escalon Medical Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Star Equity and Escalon Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Star Equity and Escalon Medical
The main advantage of trading using opposite Star Equity and Escalon Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Equity position performs unexpectedly, Escalon Medical 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 Escalon Medical will offset losses from the drop in Escalon Medical's long position.Star Equity vs. Robix Environmental Technologies | Star Equity vs. Universal Stainless Alloy | Star Equity vs. Olympic Steel | Star Equity vs. Genfit |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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