Correlation Between Clarkson PLC and COSCO SHIPPING
Can any of the company-specific risk be diversified away by investing in both Clarkson PLC and COSCO SHIPPING 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 Clarkson PLC and COSCO SHIPPING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clarkson PLC and COSCO SHIPPING Holdings, you can compare the effects of market volatilities on Clarkson PLC and COSCO SHIPPING 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 Clarkson PLC with a short position of COSCO SHIPPING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clarkson PLC and COSCO SHIPPING.
Diversification Opportunities for Clarkson PLC and COSCO SHIPPING
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Clarkson and COSCO is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Clarkson PLC and COSCO SHIPPING Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSCO SHIPPING Holdings and Clarkson PLC 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 Clarkson PLC are associated (or correlated) with COSCO SHIPPING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSCO SHIPPING Holdings has no effect on the direction of Clarkson PLC i.e., Clarkson PLC and COSCO SHIPPING go up and down completely randomly.
Pair Corralation between Clarkson PLC and COSCO SHIPPING
Assuming the 90 days horizon Clarkson PLC is expected to generate 0.39 times more return on investment than COSCO SHIPPING. However, Clarkson PLC is 2.56 times less risky than COSCO SHIPPING. It trades about 0.35 of its potential returns per unit of risk. COSCO SHIPPING Holdings is currently generating about 0.0 per unit of risk. If you would invest 4,686 in Clarkson PLC on September 12, 2024 and sell it today you would earn a total of 564.00 from holding Clarkson PLC or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Clarkson PLC vs. COSCO SHIPPING Holdings
Performance |
| Timeline |
| Clarkson PLC |
| COSCO SHIPPING Holdings |
Clarkson PLC and COSCO SHIPPING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clarkson PLC and COSCO SHIPPING
The main advantage of trading using opposite Clarkson PLC and COSCO SHIPPING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clarkson PLC position performs unexpectedly, COSCO SHIPPING 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 COSCO SHIPPING will offset losses from the drop in COSCO SHIPPING's long position.| Clarkson PLC vs. Toro | Clarkson PLC vs. Seanergy Maritime Holdings | Clarkson PLC vs. Globus Maritime | Clarkson PLC vs. TOP Ships |
| COSCO SHIPPING vs. Hapag Lloyd Aktiengesellschaft | COSCO SHIPPING vs. Nippon Yusen Kabushiki | COSCO SHIPPING vs. AP Moeller | COSCO SHIPPING vs. Orient Overseas International |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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