Correlation Between CPLP Old and Star Bulk
Can any of the company-specific risk be diversified away by investing in both CPLP Old and Star Bulk 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 CPLP Old and Star Bulk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CPLP Old and Star Bulk Carriers, you can compare the effects of market volatilities on CPLP Old and Star Bulk 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 CPLP Old with a short position of Star Bulk. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPLP Old and Star Bulk.
Diversification Opportunities for CPLP Old and Star Bulk
Pay attention - limited upside
The 3 months correlation between CPLP and Star is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CPLP Old and Star Bulk Carriers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Bulk Carriers and CPLP Old 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 CPLP Old are associated (or correlated) with Star Bulk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Bulk Carriers has no effect on the direction of CPLP Old i.e., CPLP Old and Star Bulk go up and down completely randomly.
Pair Corralation between CPLP Old and Star Bulk
Given the investment horizon of 90 days CPLP Old is expected to under-perform the Star Bulk. In addition to that, CPLP Old is 4.74 times more volatile than Star Bulk Carriers. It trades about -0.08 of its total potential returns per unit of risk. Star Bulk Carriers is currently generating about -0.05 per unit of volatility. If you would invest 2,033 in Star Bulk Carriers on November 3, 2024 and sell it today you would lose (496.00) from holding Star Bulk Carriers or give up 24.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 56.45% |
| Values | Daily Returns |
CPLP Old vs. Star Bulk Carriers
Performance |
| Timeline |
| CPLP Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Star Bulk Carriers |
CPLP Old and Star Bulk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CPLP Old and Star Bulk
The main advantage of trading using opposite CPLP Old and Star Bulk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPLP Old position performs unexpectedly, Star Bulk 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 Star Bulk will offset losses from the drop in Star Bulk's long position.| CPLP Old vs. Danaos | CPLP Old vs. Global Ship Lease | CPLP Old vs. Euroseas | CPLP Old vs. Navios Maritime Partners |
| Star Bulk vs. Genco Shipping Trading | Star Bulk vs. Diana Shipping | Star Bulk vs. Danaos | Star Bulk vs. Golden Ocean Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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