Correlation Between DAmico International and Castor Maritime
Can any of the company-specific risk be diversified away by investing in both DAmico International and Castor 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 DAmico International and Castor Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between dAmico International Shipping and Castor Maritime, you can compare the effects of market volatilities on DAmico International and Castor 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 DAmico International with a short position of Castor Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAmico International and Castor Maritime.
Diversification Opportunities for DAmico International and Castor Maritime
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DAmico and Castor is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding dAmico International Shipping and Castor Maritime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Castor Maritime and DAmico International 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 dAmico International Shipping are associated (or correlated) with Castor Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Castor Maritime has no effect on the direction of DAmico International i.e., DAmico International and Castor Maritime go up and down completely randomly.
Pair Corralation between DAmico International and Castor Maritime
Assuming the 90 days horizon dAmico International Shipping is expected to generate 0.69 times more return on investment than Castor Maritime. However, dAmico International Shipping is 1.45 times less risky than Castor Maritime. It trades about 0.03 of its potential returns per unit of risk. Castor Maritime is currently generating about 0.01 per unit of risk. If you would invest 336.00 in dAmico International Shipping on September 26, 2024 and sell it today you would earn a total of 71.00 from holding dAmico International Shipping or generate 21.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
dAmico International Shipping vs. Castor Maritime
Performance |
| Timeline |
| dAmico International |
| Castor Maritime |
DAmico International and Castor Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DAmico International and Castor Maritime
The main advantage of trading using opposite DAmico International and Castor Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAmico International position performs unexpectedly, Castor 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 Castor Maritime will offset losses from the drop in Castor Maritime's long position.| DAmico International vs. Orient Overseas Limited | DAmico International vs. COSCO SHIPPING Holdings | DAmico International vs. AP Moeller Maersk AS | DAmico International vs. Hapag Lloyd Aktiengesellschaft |
| Castor Maritime vs. Pyxis Tankers | Castor Maritime vs. Pacific Basin Shipping | Castor Maritime vs. dAmico International Shipping | Castor 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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