Correlation Between Diana Shipping and Golden Ocean
Can any of the company-specific risk be diversified away by investing in both Diana Shipping and Golden Ocean 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 Diana Shipping and Golden Ocean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diana Shipping and Golden Ocean Group, you can compare the effects of market volatilities on Diana Shipping and Golden Ocean 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 Diana Shipping with a short position of Golden Ocean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diana Shipping and Golden Ocean.
Diversification Opportunities for Diana Shipping and Golden Ocean
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Diana and Golden is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Diana Shipping and Golden Ocean Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Ocean Group and Diana Shipping 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 Diana Shipping are associated (or correlated) with Golden Ocean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Ocean Group has no effect on the direction of Diana Shipping i.e., Diana Shipping and Golden Ocean go up and down completely randomly.
Pair Corralation between Diana Shipping and Golden Ocean
Considering the 90-day investment horizon Diana Shipping is expected to generate 1.23 times more return on investment than Golden Ocean. However, Diana Shipping is 1.23 times more volatile than Golden Ocean Group. It trades about -0.09 of its potential returns per unit of risk. Golden Ocean Group is currently generating about -0.17 per unit of risk. If you would invest 217.00 in Diana Shipping on November 18, 2024 and sell it today you would lose (34.00) from holding Diana Shipping or give up 15.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diana Shipping vs. Golden Ocean Group
Performance |
| Timeline |
| Diana Shipping |
| Golden Ocean Group |
Diana Shipping and Golden Ocean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diana Shipping and Golden Ocean
The main advantage of trading using opposite Diana Shipping and Golden Ocean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diana Shipping position performs unexpectedly, Golden Ocean 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 Golden Ocean will offset losses from the drop in Golden Ocean's long position.| Diana Shipping vs. Star Bulk Carriers | Diana Shipping vs. Golden Ocean Group | Diana Shipping vs. Global Ship Lease | Diana Shipping vs. Genco Shipping Trading |
| Golden Ocean vs. Genco Shipping Trading | Golden Ocean vs. Global Ship Lease | Golden Ocean vs. Diana Shipping | Golden Ocean vs. Star Bulk Carriers |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |