Correlation Between ENDRA Life and Star Equity

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

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

Diversification Opportunities for ENDRA Life and Star Equity

0.31

Correlation Coefficient

ENDRA Life  Star Equity

Weak diversification

The 3 months correlation between ENDRA and Star is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding ENDRA Life Sciences and Star Equity Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Equity Holdings and ENDRA Life 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 ENDRA Life Sciences are associated (or correlated) with Star Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Equity Holdings has no effect on the direction of ENDRA Life i.e., ENDRA Life and Star Equity go up and down completely randomly.

Pair Corralation between ENDRA Life and Star Equity

Given the investment horizon of 90 days ENDRA Life Sciences is expected to under-perform the Star Equity. In addition to that, ENDRA Life is 7.81 times more volatile than Star Equity Holdings. It trades about -0.03 of its total potential returns per unit of risk. Star Equity Holdings is currently generating about -0.01 per unit of volatility. If you would invest  965.00  in Star Equity Holdings on August 31, 2024 and sell it today you would lose (23.00) from holding Star Equity Holdings or give up 2.38% of portfolio value over 90 days.

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

ENDRA Life Sciences  vs.  Star Equity Holdings

ENDRA Life Sciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ENDRA Life Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Star Equity Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Star Equity Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Star Equity is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with ENDRA Life and Star Equity

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

The idea behind ENDRA Life Sciences and Star Equity 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.