Correlation Between GRUPO CARSO-A1 and Global Ship
Can any of the company-specific risk be diversified away by investing in both GRUPO CARSO-A1 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 GRUPO CARSO-A1 and Global Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRUPO CARSO A1 and Global Ship Lease, you can compare the effects of market volatilities on GRUPO CARSO-A1 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 GRUPO CARSO-A1 with a short position of Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRUPO CARSO-A1 and Global Ship.
Diversification Opportunities for GRUPO CARSO-A1 and Global Ship
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRUPO and Global is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding GRUPO CARSO A1 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 GRUPO CARSO-A1 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 GRUPO CARSO A1 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 GRUPO CARSO-A1 i.e., GRUPO CARSO-A1 and Global Ship go up and down completely randomly.
Pair Corralation between GRUPO CARSO-A1 and Global Ship
Assuming the 90 days trading horizon GRUPO CARSO A1 is expected to generate 1.87 times more return on investment than Global Ship. However, GRUPO CARSO-A1 is 1.87 times more volatile than Global Ship Lease. It trades about 0.05 of its potential returns per unit of risk. Global Ship Lease is currently generating about -0.02 per unit of risk. If you would invest 510.00 in GRUPO CARSO A1 on August 28, 2024 and sell it today you would earn a total of 35.00 from holding GRUPO CARSO A1 or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRUPO CARSO A1 vs. Global Ship Lease
Performance |
| Timeline |
| GRUPO CARSO A1 |
| Global Ship Lease |
GRUPO CARSO-A1 and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRUPO CARSO-A1 and Global Ship
The main advantage of trading using opposite GRUPO CARSO-A1 and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRUPO CARSO-A1 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.| GRUPO CARSO-A1 vs. Apple Inc | GRUPO CARSO-A1 vs. Apple Inc | GRUPO CARSO-A1 vs. Apple Inc | GRUPO CARSO-A1 vs. Microsoft |
| Global Ship vs. COSTCO WHOLESALE CDR | Global Ship vs. WisdomTree Investments | Global Ship vs. Apollo Investment Corp | Global Ship vs. Retail Estates NV |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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