Correlation Between Costamare and Capital Clean
Can any of the company-specific risk be diversified away by investing in both Costamare and Capital Clean 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 Costamare and Capital Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Costamare and Capital Clean Energy, you can compare the effects of market volatilities on Costamare and Capital Clean 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 Costamare with a short position of Capital Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Costamare and Capital Clean.
Diversification Opportunities for Costamare and Capital Clean
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Costamare and Capital is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Costamare and Capital Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Clean Energy and Costamare 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 Costamare are associated (or correlated) with Capital Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Clean Energy has no effect on the direction of Costamare i.e., Costamare and Capital Clean go up and down completely randomly.
Pair Corralation between Costamare and Capital Clean
Assuming the 90 days trading horizon Costamare is expected to generate 1.62 times less return on investment than Capital Clean. But when comparing it to its historical volatility, Costamare is 1.44 times less risky than Capital Clean. It trades about 0.04 of its potential returns per unit of risk. Capital Clean Energy is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,310 in Capital Clean Energy on August 27, 2024 and sell it today you would earn a total of 517.00 from holding Capital Clean Energy or generate 39.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Costamare vs. Capital Clean Energy
Performance |
| Timeline |
| Costamare |
| Capital Clean Energy |
Costamare and Capital Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Costamare and Capital Clean
The main advantage of trading using opposite Costamare and Capital Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Costamare position performs unexpectedly, Capital Clean 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 Capital Clean will offset losses from the drop in Capital Clean's long position.| Costamare vs. Safe Bulkers | Costamare vs. Safe Bulkers | Costamare vs. Diana Shipping | Costamare vs. Global Ship Lease |
| Capital Clean vs. Star Bulk Carriers | Capital Clean vs. TOP Ships | Capital Clean vs. Seanergy Maritime Holdings | Capital Clean vs. Performance Shipping |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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