Correlation Between Costamare and Costamare
Can any of the company-specific risk be diversified away by investing in both Costamare and Costamare 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 Costamare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Costamare and Costamare, you can compare the effects of market volatilities on Costamare and Costamare 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 Costamare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Costamare and Costamare.
Diversification Opportunities for Costamare and Costamare
Modest diversification
The 3 months correlation between Costamare and Costamare is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Costamare and Costamare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Costamare 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 Costamare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Costamare has no effect on the direction of Costamare i.e., Costamare and Costamare go up and down completely randomly.
Pair Corralation between Costamare and Costamare
Assuming the 90 days trading horizon Costamare is expected to under-perform the Costamare. But the preferred stock apears to be less risky and, when comparing its historical volatility, Costamare is 1.69 times less risky than Costamare. The preferred stock trades about -0.14 of its potential returns per unit of risk. The Costamare is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,583 in Costamare on August 27, 2024 and sell it today you would lose (13.00) from holding Costamare or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Costamare vs. Costamare
Performance |
| Timeline |
| Costamare |
| Costamare |
Costamare and Costamare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Costamare and Costamare
The main advantage of trading using opposite Costamare and Costamare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Costamare position performs unexpectedly, Costamare 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 Costamare will offset losses from the drop in Costamare's long position.| Costamare vs. Safe Bulkers | Costamare vs. Safe Bulkers | Costamare vs. Diana Shipping | Costamare vs. Global Ship Lease |
| Costamare vs. Costamare | Costamare vs. Global Ship Lease | Costamare vs. Diana Shipping | Costamare vs. Safe Bulkers |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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