Correlation Between Star Phoenix and Volkswagen
Can any of the company-specific risk be diversified away by investing in both Star Phoenix and Volkswagen 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 Phoenix and Volkswagen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Phoenix Group and Volkswagen AG, you can compare the effects of market volatilities on Star Phoenix and Volkswagen 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 Phoenix with a short position of Volkswagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Phoenix and Volkswagen.
Diversification Opportunities for Star Phoenix and Volkswagen
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Star and Volkswagen is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Star Phoenix Group and Volkswagen AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volkswagen AG and Star Phoenix 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 Phoenix Group are associated (or correlated) with Volkswagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volkswagen AG has no effect on the direction of Star Phoenix i.e., Star Phoenix and Volkswagen go up and down completely randomly.
Pair Corralation between Star Phoenix and Volkswagen
Assuming the 90 days horizon Star Phoenix Group is expected to generate 3.61 times more return on investment than Volkswagen. However, Star Phoenix is 3.61 times more volatile than Volkswagen AG. It trades about 0.08 of its potential returns per unit of risk. Volkswagen AG is currently generating about 0.0 per unit of risk. If you would invest 22.00 in Star Phoenix Group on September 1, 2025 and sell it today you would earn a total of 5.00 from holding Star Phoenix Group or generate 22.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Star Phoenix Group vs. Volkswagen AG
Performance |
| Timeline |
| Star Phoenix Group |
| Volkswagen AG |
Star Phoenix and Volkswagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Phoenix and Volkswagen
The main advantage of trading using opposite Star Phoenix and Volkswagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Phoenix position performs unexpectedly, Volkswagen 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 Volkswagen will offset losses from the drop in Volkswagen's long position.| Star Phoenix vs. Hyatt Hotels | Star Phoenix vs. Chatham Lodging Trust | Star Phoenix vs. Braemar Hotels Resorts | Star Phoenix vs. Fernhill Beverage |
| Volkswagen vs. Storage Computer | Volkswagen vs. BlueScope Steel Ltd | Volkswagen vs. nDatalyze Corp | Volkswagen vs. Ironstone Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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