Correlation Between Stargate Finance and SUN

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

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

Diversification Opportunities for Stargate Finance and SUN

0.15

Correlation Coefficient

Stargate Finance  SUN

Average diversification

The 3 months correlation between Stargate and SUN is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Stargate Finance and SUN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUN and Stargate Finance 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 Stargate Finance are associated (or correlated) with SUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUN has no effect on the direction of Stargate Finance i.e., Stargate Finance and SUN go up and down completely randomly.

Pair Corralation between Stargate Finance and SUN

Assuming the 90 days trading horizon Stargate Finance is expected to generate 1.03 times more return on investment than SUN. However, Stargate Finance is 1.03 times more volatile than SUN. It trades about 0.13 of its potential returns per unit of risk. SUN is currently generating about -0.04 per unit of risk. If you would invest  28.00  in Stargate Finance on September 1, 2024 and sell it today you would earn a total of  13.00  from holding Stargate Finance or generate 46.43% return on investment over 90 days.

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

Stargate Finance  vs.  SUN

Stargate Finance

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Stargate Finance are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Stargate Finance exhibited solid returns over the last few months and may actually be approaching a breakup point.

SUN

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SUN has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's basic indicators remain rather sound which may send shares a bit higher in December 2024. The latest tumult may also be a sign of longer-term up-swing for SUN shareholders.

Pair Trading with Stargate Finance and SUN

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

The idea behind Stargate Finance and SUN 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.