Correlation Between Eagle Bulk and Oceanpal
Can any of the company-specific risk be diversified away by investing in both Eagle Bulk and Oceanpal 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 Oceanpal 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 Oceanpal, you can compare the effects of market volatilities on Eagle Bulk and Oceanpal 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 Oceanpal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Bulk and Oceanpal.
Diversification Opportunities for Eagle Bulk and Oceanpal
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eagle and Oceanpal is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Bulk Shipping and Oceanpal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oceanpal 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 Oceanpal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oceanpal has no effect on the direction of Eagle Bulk i.e., Eagle Bulk and Oceanpal go up and down completely randomly.
Pair Corralation between Eagle Bulk and Oceanpal
Given the investment horizon of 90 days Eagle Bulk Shipping is expected to generate 0.38 times more return on investment than Oceanpal. However, Eagle Bulk Shipping is 2.64 times less risky than Oceanpal. It trades about -0.02 of its potential returns per unit of risk. Oceanpal is currently generating about -0.11 per unit of risk. If you would invest 4,999 in Eagle Bulk Shipping on August 30, 2024 and sell it today you would lose (649.00) from holding Eagle Bulk Shipping or give up 12.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.31% |
| Values | Daily Returns |
Eagle Bulk Shipping vs. Oceanpal
Performance |
| Timeline |
| Eagle Bulk Shipping |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oceanpal |
Eagle Bulk and Oceanpal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Bulk and Oceanpal
The main advantage of trading using opposite Eagle Bulk and Oceanpal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Bulk position performs unexpectedly, Oceanpal 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 Oceanpal will offset losses from the drop in Oceanpal'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 |
| Oceanpal vs. Genco Shipping Trading | Oceanpal vs. Golden Ocean Group | Oceanpal vs. Star Bulk Carriers | Oceanpal vs. TOP Ships |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |