Correlation Between Star Equity and Second Sight
Can any of the company-specific risk be diversified away by investing in both Star Equity and Second Sight 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 Star Equity and Second Sight into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Equity Holdings and Second Sight Medical, you can compare the effects of market volatilities on Star Equity and Second Sight 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 Star Equity with a short position of Second Sight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Equity and Second Sight.
Diversification Opportunities for Star Equity and Second Sight
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Star and Second is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Star Equity Holdings and Second Sight Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Second Sight Medical and Star Equity 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 Star Equity Holdings are associated (or correlated) with Second Sight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Second Sight Medical has no effect on the direction of Star Equity i.e., Star Equity and Second Sight go up and down completely randomly.
Pair Corralation between Star Equity and Second Sight
If you would invest 414.00 in Second Sight Medical on January 24, 2024 and sell it today you would earn a total of 0.00 from holding Second Sight Medical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Star Equity Holdings vs. Second Sight Medical
Performance |
| Timeline |
| Star Equity Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Second Sight Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Star Equity and Second Sight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Equity and Second Sight
The main advantage of trading using opposite Star Equity and Second Sight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Equity position performs unexpectedly, Second Sight 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 Second Sight will offset losses from the drop in Second Sight's long position.| Star Equity vs. Papaya Growth Opportunity | Star Equity vs. Smith Douglas Homes | Star Equity vs. Hurco Companies | Star Equity vs. Eldorado Gold Corp |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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