Correlation Between Black Spade and First Ship
Can any of the company-specific risk be diversified away by investing in both Black Spade and First 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 Black Spade and First Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Black Spade Acquisition and First Ship Lease, you can compare the effects of market volatilities on Black Spade and First 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 Black Spade with a short position of First Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Spade and First Ship.
Diversification Opportunities for Black Spade and First Ship
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Black and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Black Spade Acquisition and First Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Ship Lease and Black Spade 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 Black Spade Acquisition are associated (or correlated) with First Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Ship Lease has no effect on the direction of Black Spade i.e., Black Spade and First Ship go up and down completely randomly.
Pair Corralation between Black Spade and First Ship
Assuming the 90 days horizon Black Spade is expected to generate 7.86 times less return on investment than First Ship. But when comparing it to its historical volatility, Black Spade Acquisition is 11.01 times less risky than First Ship. It trades about 0.06 of its potential returns per unit of risk. First Ship Lease is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2.50 in First Ship Lease on November 2, 2024 and sell it today you would earn a total of 1.50 from holding First Ship Lease or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 21.37% |
| Values | Daily Returns |
Black Spade Acquisition vs. First Ship Lease
Performance |
| Timeline |
| Black Spade Acquisition |
| First Ship Lease |
Black Spade and First Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Spade and First Ship
The main advantage of trading using opposite Black Spade and First Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Spade position performs unexpectedly, First 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 First Ship will offset losses from the drop in First Ship's long position.| Black Spade vs. Royalty Management Holding | Black Spade vs. MACOM Technology Solutions | Black Spade vs. Arm Holdings plc | Black Spade vs. Entegris |
| First Ship vs. Weibo Corp | First Ship vs. Asure Software | First Ship vs. NL Industries | First Ship vs. Zhihu Inc ADR |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |