Correlation Between Eagle Bulk and Danaos
Can any of the company-specific risk be diversified away by investing in both Eagle Bulk and Danaos 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 Danaos 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 Danaos, you can compare the effects of market volatilities on Eagle Bulk and Danaos 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 Danaos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Bulk and Danaos.
Diversification Opportunities for Eagle Bulk and Danaos
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eagle and Danaos is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Bulk Shipping and Danaos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danaos 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 Danaos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danaos has no effect on the direction of Eagle Bulk i.e., Eagle Bulk and Danaos go up and down completely randomly.
Pair Corralation between Eagle Bulk and Danaos
If you would invest 8,535 in Danaos on August 26, 2024 and sell it today you would earn a total of 56.00 from holding Danaos or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.27% |
| Values | Daily Returns |
Eagle Bulk Shipping vs. Danaos
Performance |
| Timeline |
| Eagle Bulk Shipping |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Danaos |
Eagle Bulk and Danaos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Bulk and Danaos
The main advantage of trading using opposite Eagle Bulk and Danaos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Bulk position performs unexpectedly, Danaos 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 Danaos will offset losses from the drop in Danaos' 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 |
| Danaos vs. Genco Shipping Trading | Danaos vs. Costamare | Danaos vs. Ardmore Shpng | Danaos vs. Global Ship Lease |
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
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |