Correlation Between Stardust Power and Japan Airlines

Can any of the company-specific risk be diversified away by investing in both Stardust Power and Japan Airlines 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 Stardust Power and Japan Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Stardust Power and Japan Airlines Ltd, you can compare the effects of market volatilities on Stardust Power and Japan Airlines 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 Stardust Power with a short position of Japan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stardust Power and Japan Airlines.

Diversification Opportunities for Stardust Power and Japan Airlines

-0.46

Correlation Coefficient

Stardust Power  Japan Airlines

Very good diversification

The 3 months correlation between Stardust and Japan is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Stardust Power and Japan Airlines Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Airlines and Stardust Power 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 Stardust Power are associated (or correlated) with Japan Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Airlines has no effect on the direction of Stardust Power i.e., Stardust Power and Japan Airlines go up and down completely randomly.

Pair Corralation between Stardust Power and Japan Airlines

Given the investment horizon of 90 days Stardust Power is expected to under-perform the Japan Airlines. In addition to that, Stardust Power is 4.13 times more volatile than Japan Airlines Ltd. It trades about -0.13 of its total potential returns per unit of risk. Japan Airlines Ltd is currently generating about -0.21 per unit of volatility. If you would invest  969.00  in Japan Airlines Ltd on September 10, 2025 and sell it today you would lose (67.00) from holding Japan Airlines Ltd or give up 6.91% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Stardust Power  vs.  Japan Airlines Ltd

Stardust Power

Risk-Adjusted Performance

Fair

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

Japan Airlines

Risk-Adjusted Performance

Weakest

Over the last 90 days Japan Airlines Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Stardust Power and Japan Airlines

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

The idea behind Stardust Power and Japan Airlines Ltd 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.