Correlation Between EAGLE MATERIALS and Global Ship
Can any of the company-specific risk be diversified away by investing in both EAGLE MATERIALS and Global Ship 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 EAGLE MATERIALS and Global Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EAGLE MATERIALS and Global Ship Lease, you can compare the effects of market volatilities on EAGLE MATERIALS and Global Ship 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 EAGLE MATERIALS with a short position of Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAGLE MATERIALS and Global Ship.
Diversification Opportunities for EAGLE MATERIALS and Global Ship
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between EAGLE and Global is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding EAGLE MATERIALS and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease and EAGLE MATERIALS 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 EAGLE MATERIALS are associated (or correlated) with Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of EAGLE MATERIALS i.e., EAGLE MATERIALS and Global Ship go up and down completely randomly.
Pair Corralation between EAGLE MATERIALS and Global Ship
Assuming the 90 days trading horizon EAGLE MATERIALS is expected to under-perform the Global Ship. In addition to that, EAGLE MATERIALS is 1.06 times more volatile than Global Ship Lease. It trades about -0.03 of its total potential returns per unit of risk. Global Ship Lease is currently generating about 0.01 per unit of volatility. If you would invest 2,128 in Global Ship Lease on October 18, 2024 and sell it today you would earn a total of 16.00 from holding Global Ship Lease or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EAGLE MATERIALS vs. Global Ship Lease
Performance |
| Timeline |
| EAGLE MATERIALS |
| Global Ship Lease |
EAGLE MATERIALS and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAGLE MATERIALS and Global Ship
The main advantage of trading using opposite EAGLE MATERIALS and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAGLE MATERIALS position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship's long position.| EAGLE MATERIALS vs. THRACE PLASTICS | EAGLE MATERIALS vs. Elmos Semiconductor SE | EAGLE MATERIALS vs. TOREX SEMICONDUCTOR LTD | EAGLE MATERIALS vs. Sumitomo Rubber Industries |
| Global Ship vs. BII Railway Transportation | Global Ship vs. USWE SPORTS AB | Global Ship vs. Yuexiu Transport Infrastructure | Global Ship vs. TITANIUM TRANSPORTGROUP |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |