Correlation Between Scottish Mortgage and Global Ship
Can any of the company-specific risk be diversified away by investing in both Scottish Mortgage and Global Ship 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 Scottish Mortgage and Global Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scottish Mortgage Investment and Global Ship Lease, you can compare the effects of market volatilities on Scottish Mortgage and Global Ship 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 Scottish Mortgage with a short position of Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scottish Mortgage and Global Ship.
Diversification Opportunities for Scottish Mortgage and Global Ship
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scottish and Global is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Scottish Mortgage Investment and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease and Scottish Mortgage 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 Scottish Mortgage Investment are associated (or correlated) with Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of Scottish Mortgage i.e., Scottish Mortgage and Global Ship go up and down completely randomly.
Pair Corralation between Scottish Mortgage and Global Ship
Assuming the 90 days trading horizon Scottish Mortgage Investment is expected to generate 1.1 times more return on investment than Global Ship. However, Scottish Mortgage is 1.1 times more volatile than Global Ship Lease. It trades about 0.33 of its potential returns per unit of risk. Global Ship Lease is currently generating about -0.08 per unit of risk. If you would invest 1,175 in Scottish Mortgage Investment on November 5, 2024 and sell it today you would earn a total of 142.00 from holding Scottish Mortgage Investment or generate 12.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scottish Mortgage Investment vs. Global Ship Lease
Performance |
| Timeline |
| Scottish Mortgage |
| Global Ship Lease |
Scottish Mortgage and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scottish Mortgage and Global Ship
The main advantage of trading using opposite Scottish Mortgage and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scottish Mortgage position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship's long position.| Scottish Mortgage vs. RYANAIR HLDGS ADR | Scottish Mortgage vs. OURGAME INTHOLDL 00005 | Scottish Mortgage vs. SOGECLAIR SA INH | Scottish Mortgage vs. CONTAGIOUS GAMING INC |
| Global Ship vs. Universal Entertainment | Global Ship vs. ATRESMEDIA | Global Ship vs. MCEWEN MINING INC | Global Ship vs. Jacquet Metal Service |
Check out your portfolio center.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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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