Correlation Between Diana Shipping and FT Cboe
Can any of the company-specific risk be diversified away by investing in both Diana Shipping and FT Cboe 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 FT Cboe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diana Shipping and FT Cboe Vest, you can compare the effects of market volatilities on Diana Shipping and FT Cboe 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 FT Cboe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diana Shipping and FT Cboe.
Diversification Opportunities for Diana Shipping and FT Cboe
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Diana and QMAR is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Diana Shipping and FT Cboe Vest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FT Cboe Vest 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 FT Cboe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FT Cboe Vest has no effect on the direction of Diana Shipping i.e., Diana Shipping and FT Cboe go up and down completely randomly.
Pair Corralation between Diana Shipping and FT Cboe
Considering the 90-day investment horizon Diana Shipping is expected to generate 4.08 times more return on investment than FT Cboe. However, Diana Shipping is 4.08 times more volatile than FT Cboe Vest. It trades about 0.04 of its potential returns per unit of risk. FT Cboe Vest is currently generating about 0.13 per unit of risk. If you would invest 173.00 in Diana Shipping on November 27, 2024 and sell it today you would earn a total of 7.00 from holding Diana Shipping or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diana Shipping vs. FT Cboe Vest
Performance |
| Timeline |
| Diana Shipping |
| FT Cboe Vest |
Diana Shipping and FT Cboe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diana Shipping and FT Cboe
The main advantage of trading using opposite Diana Shipping and FT Cboe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diana Shipping position performs unexpectedly, FT Cboe 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 FT Cboe will offset losses from the drop in FT Cboe'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 |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |