Correlation Between Star Fashion and Lendway
Can any of the company-specific risk be diversified away by investing in both Star Fashion and Lendway 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 Fashion and Lendway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Fashion Culture and Lendway, you can compare the effects of market volatilities on Star Fashion and Lendway 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 Fashion with a short position of Lendway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Fashion and Lendway.
Diversification Opportunities for Star Fashion and Lendway
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Star and Lendway is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Star Fashion Culture and Lendway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendway and Star Fashion 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 Fashion Culture are associated (or correlated) with Lendway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendway has no effect on the direction of Star Fashion i.e., Star Fashion and Lendway go up and down completely randomly.
Pair Corralation between Star Fashion and Lendway
Given the investment horizon of 90 days Star Fashion Culture is expected to under-perform the Lendway. In addition to that, Star Fashion is 3.05 times more volatile than Lendway. It trades about -0.1 of its total potential returns per unit of risk. Lendway is currently generating about -0.07 per unit of volatility. If you would invest 515.00 in Lendway on August 14, 2025 and sell it today you would lose (135.00) from holding Lendway or give up 26.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Star Fashion Culture vs. Lendway
Performance |
| Timeline |
| Star Fashion Culture |
| Lendway |
Star Fashion and Lendway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Fashion and Lendway
The main advantage of trading using opposite Star Fashion and Lendway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Fashion position performs unexpectedly, Lendway 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 Lendway will offset losses from the drop in Lendway's long position.| Star Fashion vs. Cheer Holding | Star Fashion vs. Zeta Network Group | Star Fashion vs. Cumulus Media Class | Star Fashion vs. BuzzFeed |
| Lendway vs. Direct Digital Holdings | Lendway vs. TNL Mediagene Ordinary | Lendway vs. ZW Data Action | Lendway vs. Ucloudlink 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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