Correlation Between CryptoStar Corp and ITEX Corp

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

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

Diversification Opportunities for CryptoStar Corp and ITEX Corp

-0.32

Correlation Coefficient

CryptoStar Corp  ITEX Corp

Very good diversification

The 3 months correlation between CryptoStar and ITEX is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding CryptoStar Corp and ITEX Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITEX Corp and CryptoStar Corp 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 CryptoStar Corp are associated (or correlated) with ITEX Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITEX Corp has no effect on the direction of CryptoStar Corp i.e., CryptoStar Corp and ITEX Corp go up and down completely randomly.

Pair Corralation between CryptoStar Corp and ITEX Corp

Assuming the 90 days horizon CryptoStar Corp is expected to generate 2.42 times more return on investment than ITEX Corp. However, CryptoStar Corp is 2.42 times more volatile than ITEX Corp. It trades about 0.06 of its potential returns per unit of risk. ITEX Corp is currently generating about -0.08 per unit of risk. If you would invest  1.14  in CryptoStar Corp on August 5, 2025 and sell it today you would earn a total of  0.03  from holding CryptoStar Corp or generate 2.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

CryptoStar Corp  vs.  ITEX Corp

CryptoStar Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in CryptoStar Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CryptoStar Corp reported solid returns over the last few months and may actually be approaching a breakup point.

ITEX Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days ITEX Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with CryptoStar Corp and ITEX Corp

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

The idea behind CryptoStar Corp and ITEX 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.