Correlation Between COSCO SHIPPING and Pyxis Tankers
Can any of the company-specific risk be diversified away by investing in both COSCO SHIPPING and Pyxis Tankers 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 COSCO SHIPPING and Pyxis Tankers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSCO SHIPPING Holdings and Pyxis Tankers, you can compare the effects of market volatilities on COSCO SHIPPING and Pyxis Tankers 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 COSCO SHIPPING with a short position of Pyxis Tankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSCO SHIPPING and Pyxis Tankers.
Diversification Opportunities for COSCO SHIPPING and Pyxis Tankers
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between COSCO and Pyxis is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding COSCO SHIPPING Holdings and Pyxis Tankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyxis Tankers and COSCO SHIPPING 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 COSCO SHIPPING Holdings are associated (or correlated) with Pyxis Tankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyxis Tankers has no effect on the direction of COSCO SHIPPING i.e., COSCO SHIPPING and Pyxis Tankers go up and down completely randomly.
Pair Corralation between COSCO SHIPPING and Pyxis Tankers
If you would invest 2,497 in Pyxis Tankers on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Pyxis Tankers or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
COSCO SHIPPING Holdings vs. Pyxis Tankers
Performance |
| Timeline |
| COSCO SHIPPING Holdings |
| Pyxis Tankers |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
COSCO SHIPPING and Pyxis Tankers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSCO SHIPPING and Pyxis Tankers
The main advantage of trading using opposite COSCO SHIPPING and Pyxis Tankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSCO SHIPPING position performs unexpectedly, Pyxis Tankers 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 Pyxis Tankers will offset losses from the drop in Pyxis Tankers' long position.| COSCO SHIPPING vs. Mitsui OSK Lines | COSCO SHIPPING vs. Hapag Lloyd Aktiengesellschaft | COSCO SHIPPING vs. AP Moeller Maersk AS | COSCO SHIPPING vs. Orient Overseas Limited |
| Pyxis Tankers vs. FAT Brands | Pyxis Tankers vs. Fortress Biotech Pref | Pyxis Tankers vs. Medalist Diversified Reit | Pyxis Tankers vs. Air T Inc |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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