Correlation Between Allegion PLC and Stardust Power

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

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

Diversification Opportunities for Allegion PLC and Stardust Power

0.06

Correlation Coefficient

Allegion PLC  Stardust Power

Significant diversification

The 3 months correlation between Allegion and Stardust is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Allegion PLC and Stardust Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stardust Power and Allegion PLC 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 Allegion PLC are associated (or correlated) with Stardust Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stardust Power has no effect on the direction of Allegion PLC i.e., Allegion PLC and Stardust Power go up and down completely randomly.

Pair Corralation between Allegion PLC and Stardust Power

Given the investment horizon of 90 days Allegion PLC is expected to under-perform the Stardust Power. But the stock apears to be less risky and, when comparing its historical volatility, Allegion PLC is 7.84 times less risky than Stardust Power. The stock trades about -0.08 of its potential returns per unit of risk. The Stardust Power is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  279.00  in Stardust Power on September 9, 2025 and sell it today you would earn a total of  72.00  from holding Stardust Power or generate 25.81% return on investment over 90 days.

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

Allegion PLC  vs.  Stardust Power

Allegion PLC

Risk-Adjusted Performance

Weakest

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

Stardust Power

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Stardust Power are ranked lower than 6 (%) 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.

Pair Trading with Allegion PLC and Stardust Power

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

The idea behind Allegion PLC and Stardust Power 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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .