Correlation Between Starstream Entmt and Canna Consumer

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Can any of the company-specific risk be diversified away by investing in both Starstream Entmt and Canna Consumer 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 Starstream Entmt and Canna Consumer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Starstream Entmt and Canna Consumer Goods, you can compare the effects of market volatilities on Starstream Entmt and Canna Consumer 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 Starstream Entmt with a short position of Canna Consumer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Starstream Entmt and Canna Consumer.

Diversification Opportunities for Starstream Entmt and Canna Consumer

0.22
  Correlation Coefficient

Modest diversification

The 3 months correlation between Starstream and Canna is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Starstream Entmt and Canna Consumer Goods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canna Consumer Goods and Starstream Entmt 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 Starstream Entmt are associated (or correlated) with Canna Consumer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canna Consumer Goods has no effect on the direction of Starstream Entmt i.e., Starstream Entmt and Canna Consumer go up and down completely randomly.

Pair Corralation between Starstream Entmt and Canna Consumer

Given the investment horizon of 90 days Starstream Entmt is expected to generate 1.33 times more return on investment than Canna Consumer. However, Starstream Entmt is 1.33 times more volatile than Canna Consumer Goods. It trades about 0.09 of its potential returns per unit of risk. Canna Consumer Goods is currently generating about -0.12 per unit of risk. If you would invest  0.40  in Starstream Entmt on August 28, 2025 and sell it today you would earn a total of  0.10  from holding Starstream Entmt or generate 25.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Starstream Entmt  vs.  Canna Consumer Goods

 Performance 
       Timeline  
Starstream Entmt 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Starstream Entmt are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical and fundamental indicators, Starstream Entmt unveiled solid returns over the last few months and may actually be approaching a breakup point.
Canna Consumer Goods 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Canna Consumer Goods has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's primary indicators remain relatively steady which may send shares a bit higher in December 2025. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

Starstream Entmt and Canna Consumer Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Starstream Entmt and Canna Consumer

The main advantage of trading using opposite Starstream Entmt and Canna Consumer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Starstream Entmt position performs unexpectedly, Canna Consumer 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 Canna Consumer will offset losses from the drop in Canna Consumer's long position.
The idea behind Starstream Entmt and Canna Consumer Goods pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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