Correlation Between Lument Finance and Star Holdings

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

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

Diversification Opportunities for Lument Finance and Star Holdings

-0.01

Correlation Coefficient

Lument Finance  Star Holdings

Good diversification

The 3 months correlation between Lument and Star is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Lument Finance Trust and Star Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Holdings and Lument Finance 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 Lument Finance Trust are associated (or correlated) with Star Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Holdings has no effect on the direction of Lument Finance i.e., Lument Finance and Star Holdings go up and down completely randomly.

Pair Corralation between Lument Finance and Star Holdings

Considering the 90-day investment horizon Lument Finance Trust is expected to generate 1.0 times more return on investment than Star Holdings. However, Lument Finance is 1.0 times more volatile than Star Holdings. It trades about -0.02 of its potential returns per unit of risk. Star Holdings is currently generating about -0.03 per unit of risk. If you would invest  191.00  in Lument Finance Trust on October 7, 2025 and sell it today you would lose (54.00) from holding Lument Finance Trust or give up 28.27% of portfolio value over 90 days.

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

Lument Finance Trust  vs.  Star Holdings

Lument Finance Trust

Risk-Adjusted Performance

Weakest

Over the last 90 days Lument Finance Trust 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 technical and fundamental indicators remain comparatively stable which may send shares a bit higher in February 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Star Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Star Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical indicators, Star Holdings is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Lument Finance and Star Holdings

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

The idea behind Lument Finance Trust and Star Holdings 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.