Correlation Between Global Ship and GRENKELEASING
Can any of the company-specific risk be diversified away by investing in both Global Ship and GRENKELEASING 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 GRENKELEASING 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 GRENKELEASING Dusseldorf, you can compare the effects of market volatilities on Global Ship and GRENKELEASING 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 GRENKELEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and GRENKELEASING.
Diversification Opportunities for Global Ship and GRENKELEASING
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Global and GRENKELEASING is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and GRENKELEASING Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRENKELEASING Duss 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 GRENKELEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRENKELEASING Duss has no effect on the direction of Global Ship i.e., Global Ship and GRENKELEASING go up and down completely randomly.
Pair Corralation between Global Ship and GRENKELEASING
Assuming the 90 days horizon Global Ship is expected to generate 3.41 times less return on investment than GRENKELEASING. In addition to that, Global Ship is 1.13 times more volatile than GRENKELEASING Dusseldorf. It trades about 0.06 of its total potential returns per unit of risk. GRENKELEASING Dusseldorf is currently generating about 0.25 per unit of volatility. If you would invest 1,550 in GRENKELEASING Dusseldorf on October 11, 2024 and sell it today you would earn a total of 132.00 from holding GRENKELEASING Dusseldorf or generate 8.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Ship Lease vs. GRENKELEASING Dusseldorf
Performance |
| Timeline |
| Global Ship Lease |
| GRENKELEASING Duss |
Global Ship and GRENKELEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and GRENKELEASING
The main advantage of trading using opposite Global Ship and GRENKELEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship position performs unexpectedly, GRENKELEASING 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 GRENKELEASING will offset losses from the drop in GRENKELEASING's long position.| Global Ship vs. CEOTRONICS | Global Ship vs. Coor Service Management | Global Ship vs. Pure Storage | Global Ship vs. LANDSEA GREEN MANAGEMENT |
| GRENKELEASING vs. Chesapeake Utilities | GRENKELEASING vs. Haier Smart Home | GRENKELEASING vs. Focus Home Interactive | GRENKELEASING vs. GREENX METALS LTD |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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