Correlation Between Capital Product and Navios Maritime
Can any of the company-specific risk be diversified away by investing in both Capital Product and Navios Maritime 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 Capital Product and Navios Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Product Partners and Navios Maritime Partners, you can compare the effects of market volatilities on Capital Product and Navios Maritime 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 Capital Product with a short position of Navios Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Product and Navios Maritime.
Diversification Opportunities for Capital Product and Navios Maritime
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Capital and Navios is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Capital Product Partners and Navios Maritime Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navios Maritime Partners and Capital Product 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 Capital Product Partners are associated (or correlated) with Navios Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navios Maritime Partners has no effect on the direction of Capital Product i.e., Capital Product and Navios Maritime go up and down completely randomly.
Pair Corralation between Capital Product and Navios Maritime
If you would invest (100.00) in Capital Product Partners on August 26, 2024 and sell it today you would earn a total of 100.00 from holding Capital Product Partners or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Capital Product Partners vs. Navios Maritime Partners
Performance |
| Timeline |
| Capital Product Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Navios Maritime Partners |
Capital Product and Navios Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Product and Navios Maritime
The main advantage of trading using opposite Capital Product and Navios Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Product position performs unexpectedly, Navios Maritime 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 Navios Maritime will offset losses from the drop in Navios Maritime's long position.| Capital Product vs. Danaos | Capital Product vs. Global Ship Lease | Capital Product vs. Euroseas | Capital Product vs. Navios Maritime Partners |
| Navios Maritime vs. Global Ship Lease | Navios Maritime vs. Costamare | Navios Maritime vs. Genco Shipping Trading | Navios Maritime vs. Danaos |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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