Correlation Between Global Ship and Kirin Holdings
Can any of the company-specific risk be diversified away by investing in both Global Ship and Kirin 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 Global Ship and Kirin Holdings 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 Kirin Holdings, you can compare the effects of market volatilities on Global Ship and Kirin 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 Global Ship with a short position of Kirin Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and Kirin Holdings.
Diversification Opportunities for Global Ship and Kirin Holdings
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Global and Kirin is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and Kirin Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirin Holdings 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 Kirin Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirin Holdings has no effect on the direction of Global Ship i.e., Global Ship and Kirin Holdings go up and down completely randomly.
Pair Corralation between Global Ship and Kirin Holdings
Assuming the 90 days horizon Global Ship Lease is expected to under-perform the Kirin Holdings. In addition to that, Global Ship is 1.3 times more volatile than Kirin Holdings. It trades about -0.27 of its total potential returns per unit of risk. Kirin Holdings is currently generating about 0.11 per unit of volatility. If you would invest 1,280 in Kirin Holdings on September 15, 2024 and sell it today you would earn a total of 30.00 from holding Kirin Holdings or generate 2.34% 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. Kirin Holdings
Performance |
| Timeline |
| Global Ship Lease |
| Kirin Holdings |
Global Ship and Kirin Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and Kirin Holdings
The main advantage of trading using opposite Global Ship and Kirin Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship position performs unexpectedly, Kirin 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 Kirin Holdings will offset losses from the drop in Kirin Holdings' long position.| Global Ship vs. SPARTAN STORES | Global Ship vs. Consolidated Communications Holdings | Global Ship vs. Zoom Video Communications | Global Ship vs. RETAIL FOOD GROUP |
| Kirin Holdings vs. Global Ship Lease | Kirin Holdings vs. Corporate Travel Management | Kirin Holdings vs. CeoTronics AG | Kirin Holdings vs. UNITED RENTALS |
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 CEOs Directory module to screen CEOs from public companies around the world.
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