Correlation Between Eagle Bulk and CPLP Old
Can any of the company-specific risk be diversified away by investing in both Eagle Bulk and CPLP Old 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 Bulk and CPLP Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Bulk Shipping and CPLP Old, you can compare the effects of market volatilities on Eagle Bulk and CPLP Old 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 Bulk with a short position of CPLP Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Bulk and CPLP Old.
Diversification Opportunities for Eagle Bulk and CPLP Old
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eagle and CPLP is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Bulk Shipping and CPLP Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPLP Old and Eagle Bulk 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 Bulk Shipping are associated (or correlated) with CPLP Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPLP Old has no effect on the direction of Eagle Bulk i.e., Eagle Bulk and CPLP Old go up and down completely randomly.
Pair Corralation between Eagle Bulk and CPLP Old
If you would invest (100.00) in CPLP Old on October 20, 2024 and sell it today you would earn a total of 100.00 from holding CPLP Old or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Eagle Bulk Shipping vs. CPLP Old
Performance |
| Timeline |
| Eagle Bulk Shipping |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CPLP Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eagle Bulk and CPLP Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Bulk and CPLP Old
The main advantage of trading using opposite Eagle Bulk and CPLP Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Bulk position performs unexpectedly, CPLP Old 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 CPLP Old will offset losses from the drop in CPLP Old's long position.| Eagle Bulk vs. Star Bulk Carriers | Eagle Bulk vs. Golden Ocean Group | Eagle Bulk vs. Global Ship Lease | Eagle Bulk vs. Diana Shipping |
| CPLP Old vs. Danaos | CPLP Old vs. Global Ship Lease | CPLP Old vs. Euroseas | CPLP Old vs. Navios Maritime Partners |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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