Starcore Historical Financial Ratios

Pair Trading with Starcore International

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Starcore International position performs unexpectedly, the other 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 Starcore International will appreciate offsetting losses from the drop in the long position's value.

Moving against Starcore Stock

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The ability to find closely correlated positions to Starcore International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Starcore International when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Starcore International - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Starcore International Mines to buy it.
The correlation of Starcore International is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Starcore International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Starcore International moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Starcore International can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Other Information on Investing in Starcore Stock

Starcore InternationalFinancial ratios are relationships based on a company's financial information. They can serve as useful tools to evaluate Starcore International investment potential. Financial ratio analysis can also be defined as the process of presenting financial ratios, which are mathematical indicators calculated by comparing key financial information appearing on Starcore financial statements. Financial ratios are useful tools that help investors analyze and compare relationships between different pieces of financial information across Starcore International history.