Correlation Between OFFICIAL TRUMP and Starknet

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

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

Diversification Opportunities for OFFICIAL TRUMP and Starknet

0.85

Correlation Coefficient

OFFICIAL TRUMP  Starknet

Very poor diversification

The 3 months correlation between OFFICIAL and Starknet is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding OFFICIAL TRUMP and Starknet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starknet and OFFICIAL TRUMP 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 OFFICIAL TRUMP are associated (or correlated) with Starknet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starknet has no effect on the direction of OFFICIAL TRUMP i.e., OFFICIAL TRUMP and Starknet go up and down completely randomly.

Pair Corralation between OFFICIAL TRUMP and Starknet

Assuming the 90 days trading horizon OFFICIAL TRUMP is expected to under-perform the Starknet. But the crypto coin apears to be less risky and, when comparing its historical volatility, OFFICIAL TRUMP is 1.13 times less risky than Starknet. The crypto coin trades about -0.02 of its potential returns per unit of risk. The Starknet is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  15.00  in Starknet on April 24, 2025 and sell it today you would earn a total of  0.00  from holding Starknet or generate 0.0% return on investment over 90 days.

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

OFFICIAL TRUMP  vs.  Starknet

OFFICIAL TRUMP

Risk-Adjusted Performance

Very Weak

Over the last 90 days OFFICIAL TRUMP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, OFFICIAL TRUMP is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Starknet

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Starknet are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Starknet exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OFFICIAL TRUMP and Starknet

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

The idea behind OFFICIAL TRUMP and Starknet 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.