Correlation Between Starcore International and East Africa
Can any of the company-specific risk be diversified away by investing in both Starcore International and East Africa 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 Starcore International and East Africa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Starcore International Mines and East Africa Metals, you can compare the effects of market volatilities on Starcore International and East Africa 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 Starcore International with a short position of East Africa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Starcore International and East Africa.
Diversification Opportunities for Starcore International and East Africa
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Starcore and East is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Starcore International Mines and East Africa Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Africa Metals and Starcore International 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 Starcore International Mines are associated (or correlated) with East Africa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Africa Metals has no effect on the direction of Starcore International i.e., Starcore International and East Africa go up and down completely randomly.
Pair Corralation between Starcore International and East Africa
Assuming the 90 days trading horizon Starcore International Mines is expected to generate 1.25 times more return on investment than East Africa. However, Starcore International is 1.25 times more volatile than East Africa Metals. It trades about 0.19 of its potential returns per unit of risk. East Africa Metals is currently generating about -0.07 per unit of risk. If you would invest 35.00 in Starcore International Mines on September 10, 2025 and sell it today you would earn a total of 30.00 from holding Starcore International Mines or generate 85.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Starcore International Mines vs. East Africa Metals
Performance |
| Timeline |
| Starcore International |
| East Africa Metals |
Starcore International and East Africa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Starcore International and East Africa
The main advantage of trading using opposite Starcore International and East Africa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Starcore International position performs unexpectedly, East Africa 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 East Africa will offset losses from the drop in East Africa's long position.| Starcore International vs. Nevada Sunrise Gold | Starcore International vs. Ion Energy | Starcore International vs. Transition Metals Corp | Starcore International vs. Murchison Minerals |
| East Africa vs. Commerce Resources Corp | East Africa vs. Black Iron | East Africa vs. Starcore International Mines | East Africa vs. Manganese X Energy |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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