Correlation Between Star Fashion and Ispire Technology

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

By analyzing existing cross correlation between Star Fashion Culture and Ispire Technology Common, you can compare the effects of market volatilities on Star Fashion and Ispire Technology 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 Star Fashion with a short position of Ispire Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Fashion and Ispire Technology.

Diversification Opportunities for Star Fashion and Ispire Technology

-0.02

Correlation Coefficient

Star Fashion  Ispire Technology

Good diversification

The 3 months correlation between Star and Ispire is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Star Fashion Culture and Ispire Technology Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ispire Technology Common and Star Fashion 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 Star Fashion Culture are associated (or correlated) with Ispire Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ispire Technology Common has no effect on the direction of Star Fashion i.e., Star Fashion and Ispire Technology go up and down completely randomly.

Pair Corralation between Star Fashion and Ispire Technology

Given the investment horizon of 90 days Star Fashion Culture is expected to under-perform the Ispire Technology. In addition to that, Star Fashion is 1.88 times more volatile than Ispire Technology Common. It trades about -0.02 of its total potential returns per unit of risk. Ispire Technology Common is currently generating about -0.01 per unit of volatility. If you would invest  790.00  in Ispire Technology Common on July 21, 2025 and sell it today you would lose (547.00) from holding Ispire Technology Common or give up 69.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	51.92%
Values	Daily Returns

Star Fashion Culture  vs.  Ispire Technology Common

Star Fashion Culture

Risk-Adjusted Performance

Weakest

Over the last 90 days Star Fashion Culture 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 November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Ispire Technology Common

Risk-Adjusted Performance

Weakest

Over the last 90 days Ispire Technology Common has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in November 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Star Fashion and Ispire Technology

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

The idea behind Star Fashion Culture and Ispire Technology Common 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.