Correlation Between Second Sight and Star Equity
Can any of the company-specific risk be diversified away by investing in both Second Sight 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 Second Sight and Star Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Second Sight Medical and Star Equity Holdings, you can compare the effects of market volatilities on Second Sight 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 Second Sight with a short position of Star Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Second Sight and Star Equity.
Diversification Opportunities for Second Sight and Star Equity
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Second and Star is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Second Sight Medical 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 Second Sight 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 Second Sight Medical 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 Second Sight i.e., Second Sight and Star Equity go up and down completely randomly.
Pair Corralation between Second Sight and Star Equity
If you would invest (100.00) in Star Equity Holdings on January 16, 2024 and sell it today you would earn a total of 100.00 from holding Star Equity Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Second Sight Medical vs. Star Equity Holdings
Performance |
| Timeline |
| Second Sight Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Star Equity Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Second Sight and Star Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Second Sight and Star Equity
The main advantage of trading using opposite Second Sight and Star Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Second Sight 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.| Second Sight vs. Valhi Inc | Second Sight vs. Assurant | Second Sight vs. Employers Holdings | Second Sight vs. Flexible Solutions International |
| Star Equity vs. Vita Coco | Star Equity vs. Lithium Americas Corp | Star Equity vs. Westrock Coffee | Star Equity vs. Willamette Valley Vineyards |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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