Correlation Between Starwin Media and PHINIA

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

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

Diversification Opportunities for Starwin Media and PHINIA

0.0

Correlation Coefficient

Starwin Media  PHINIA

Pay attention - limited upside

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

Pair Corralation between Starwin Media and PHINIA

If you would invest  2,907  in PHINIA Inc on October 24, 2024 and sell it today you would earn a total of  2,241  from holding PHINIA Inc or generate 77.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

Starwin Media Holdings  vs.  PHINIA Inc

Starwin Media Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Starwin Media Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Starwin Media is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

PHINIA Inc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PHINIA Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent forward indicators, PHINIA displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Starwin Media and PHINIA

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

The idea behind Starwin Media Holdings and PHINIA Inc 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.

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 Commodity Directory module to find actively traded commodities issued by global exchanges.