Correlation Between CryptoStar Corp and Propel Holdings

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

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

Diversification Opportunities for CryptoStar Corp and Propel Holdings

0.69

Correlation Coefficient

CryptoStar Corp  Propel Holdings

Poor diversification

The 3 months correlation between CryptoStar and Propel is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding CryptoStar Corp and Propel Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Propel Holdings and CryptoStar Corp 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 CryptoStar Corp are associated (or correlated) with Propel Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Propel Holdings has no effect on the direction of CryptoStar Corp i.e., CryptoStar Corp and Propel Holdings go up and down completely randomly.

Pair Corralation between CryptoStar Corp and Propel Holdings

Assuming the 90 days trading horizon CryptoStar Corp is not expected to generate positive returns. Moreover, CryptoStar Corp is 3.49 times more volatile than Propel Holdings. It trades away all of its potential returns to assume current level of volatility. Propel Holdings is currently generating about -0.18 per unit of risk. If you would invest  2.50  in CryptoStar Corp on December 24, 2024 and sell it today you would lose (1.00) from holding CryptoStar Corp or give up 40.0% of portfolio value over 90 days.

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

CryptoStar Corp  vs.  Propel Holdings

CryptoStar Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days CryptoStar Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, CryptoStar Corp is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Propel Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Propel Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with CryptoStar Corp and Propel Holdings

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

The idea behind CryptoStar Corp and Propel 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.