Correlation Between Global Star and Feutune Light

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

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

Diversification Opportunities for Global Star and Feutune Light

0.0

Correlation Coefficient

Global Star  Feutune Light

Pay attention - limited upside

The 3 months correlation between Global and Feutune is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Star Acquisition, and Feutune Light Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feutune Light Acquisition and Global Star 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 Global Star Acquisition, are associated (or correlated) with Feutune Light. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feutune Light Acquisition has no effect on the direction of Global Star i.e., Global Star and Feutune Light go up and down completely randomly.

Pair Corralation between Global Star and Feutune Light

If you would invest  2.99  in Global Star Acquisition, on December 21, 2024 and sell it today you would lose (0.49) from holding Global Star Acquisition, or give up 16.39% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Global Star Acquisition,  vs.  Feutune Light Acquisition

Global Star Acquisition,

Risk-Adjusted Performance

Modest

Over the last 90 days Global Star Acquisition, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly abnormal basic indicators, Global Star showed solid returns over the last few months and may actually be approaching a breakup point.

Feutune Light Acquisition

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Global Star and Feutune Light

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

The idea behind Global Star Acquisition, and Feutune Light Acquisition 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.