Correlation Between Castor Maritime and Diana Shipping
Can any of the company-specific risk be diversified away by investing in both Castor Maritime and Diana 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 Castor Maritime and Diana Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Castor Maritime and Diana Shipping, you can compare the effects of market volatilities on Castor Maritime and Diana 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 Castor Maritime with a short position of Diana Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castor Maritime and Diana Shipping.
Diversification Opportunities for Castor Maritime and Diana Shipping
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Castor and Diana is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Castor Maritime and Diana Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diana Shipping and Castor Maritime 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 Castor Maritime are associated (or correlated) with Diana Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diana Shipping has no effect on the direction of Castor Maritime i.e., Castor Maritime and Diana Shipping go up and down completely randomly.
Pair Corralation between Castor Maritime and Diana Shipping
Given the investment horizon of 90 days Castor Maritime is expected to under-perform the Diana Shipping. In addition to that, Castor Maritime is 1.05 times more volatile than Diana Shipping. It trades about -0.22 of its total potential returns per unit of risk. Diana Shipping is currently generating about -0.1 per unit of volatility. If you would invest 220.00 in Diana Shipping on November 1, 2024 and sell it today you would lose (36.00) from holding Diana Shipping or give up 16.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Castor Maritime vs. Diana Shipping
Performance |
| Timeline |
| Castor Maritime |
| Diana Shipping |
Castor Maritime and Diana Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Castor Maritime and Diana Shipping
The main advantage of trading using opposite Castor Maritime and Diana Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castor Maritime position performs unexpectedly, Diana 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 Diana Shipping will offset losses from the drop in Diana Shipping's long position.| Castor Maritime vs. Seanergy Maritime Holdings | Castor Maritime vs. TOP Ships | Castor Maritime vs. United Maritime | Castor Maritime vs. Nordic American Tankers |
| Diana Shipping vs. Star Bulk Carriers | Diana Shipping vs. Golden Ocean Group | Diana Shipping vs. Global Ship Lease | Diana Shipping vs. Genco Shipping Trading |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |