Correlation Between Neptune Digital and CryptoStar Corp

Can any of the company-specific risk be diversified away by investing in both Neptune Digital and CryptoStar Corp 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 Neptune Digital and CryptoStar Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Neptune Digital Assets and CryptoStar Corp, you can compare the effects of market volatilities on Neptune Digital and CryptoStar Corp 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 Neptune Digital with a short position of CryptoStar Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neptune Digital and CryptoStar Corp.

Diversification Opportunities for Neptune Digital and CryptoStar Corp

0.08

Correlation Coefficient

Neptune Digital  CryptoStar Corp

Significant diversification

The 3 months correlation between Neptune and CryptoStar is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Neptune Digital Assets and CryptoStar Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CryptoStar Corp and Neptune Digital 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 Neptune Digital Assets are associated (or correlated) with CryptoStar Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CryptoStar Corp has no effect on the direction of Neptune Digital i.e., Neptune Digital and CryptoStar Corp go up and down completely randomly.

Pair Corralation between Neptune Digital and CryptoStar Corp

Assuming the 90 days horizon Neptune Digital Assets is expected to under-perform the CryptoStar Corp. But the stock apears to be less risky and, when comparing its historical volatility, Neptune Digital Assets is 3.65 times less risky than CryptoStar Corp. The stock trades about -0.02 of its potential returns per unit of risk. The CryptoStar Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1.50  in CryptoStar Corp on April 25, 2025 and sell it today you would earn a total of  0.00  from holding CryptoStar Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Neptune Digital Assets  vs.  CryptoStar Corp

Neptune Digital Assets

Risk-Adjusted Performance

Very Weak

Over the last 90 days Neptune Digital Assets has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Neptune Digital is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

CryptoStar Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CryptoStar Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, CryptoStar Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Neptune Digital and CryptoStar Corp

The main advantage of trading using opposite Neptune Digital and CryptoStar Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neptune Digital position performs unexpectedly, CryptoStar Corp 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 CryptoStar Corp will offset losses from the drop in CryptoStar Corp's long position.

The idea behind Neptune Digital Assets and CryptoStar Corp 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.