Correlation Between Global Ship and Corporate Travel
Can any of the company-specific risk be diversified away by investing in both Global Ship and Corporate Travel 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 Global Ship and Corporate Travel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Ship Lease and Corporate Travel Management, you can compare the effects of market volatilities on Global Ship and Corporate Travel 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 Global Ship with a short position of Corporate Travel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and Corporate Travel.
Diversification Opportunities for Global Ship and Corporate Travel
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Global and Corporate is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and Corporate Travel Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corporate Travel Man and Global Ship 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 Global Ship Lease are associated (or correlated) with Corporate Travel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corporate Travel Man has no effect on the direction of Global Ship i.e., Global Ship and Corporate Travel go up and down completely randomly.
Pair Corralation between Global Ship and Corporate Travel
Assuming the 90 days horizon Global Ship Lease is expected to generate 0.69 times more return on investment than Corporate Travel. However, Global Ship Lease is 1.45 times less risky than Corporate Travel. It trades about 0.05 of its potential returns per unit of risk. Corporate Travel Management is currently generating about -0.01 per unit of risk. If you would invest 1,535 in Global Ship Lease on August 27, 2024 and sell it today you would earn a total of 597.00 from holding Global Ship Lease or generate 38.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Ship Lease vs. Corporate Travel Management
Performance |
| Timeline |
| Global Ship Lease |
| Corporate Travel Man |
Global Ship and Corporate Travel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and Corporate Travel
The main advantage of trading using opposite Global Ship and Corporate Travel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship position performs unexpectedly, Corporate Travel 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 Corporate Travel will offset losses from the drop in Corporate Travel's long position.| Global Ship vs. COSTCO WHOLESALE CDR | Global Ship vs. WisdomTree Investments | Global Ship vs. Apollo Investment Corp | Global Ship vs. Retail Estates NV |
| Corporate Travel vs. Penta Ocean Construction Co | Corporate Travel vs. Daito Trust Construction | Corporate Travel vs. Sterling Construction | Corporate Travel vs. WIMFARM SA EO |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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