Correlation Between Eagle Bulk and Star Bulk
Can any of the company-specific risk be diversified away by investing in both Eagle Bulk and Star Bulk 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 Star Bulk 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 Star Bulk Carriers, you can compare the effects of market volatilities on Eagle Bulk and Star Bulk 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 Star Bulk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Bulk and Star Bulk.
Diversification Opportunities for Eagle Bulk and Star Bulk
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eagle and Star is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Bulk Shipping and Star Bulk Carriers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Bulk Carriers 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 Star Bulk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Bulk Carriers has no effect on the direction of Eagle Bulk i.e., Eagle Bulk and Star Bulk go up and down completely randomly.
Pair Corralation between Eagle Bulk and Star Bulk
If you would invest 4,350 in Eagle Bulk Shipping on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Eagle Bulk Shipping or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 2.27% |
| Values | Daily Returns |
Eagle Bulk Shipping vs. Star Bulk Carriers
Performance |
| Timeline |
| Eagle Bulk Shipping |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Star Bulk Carriers |
Eagle Bulk and Star Bulk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Bulk and Star Bulk
The main advantage of trading using opposite Eagle Bulk and Star Bulk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Bulk position performs unexpectedly, Star Bulk 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 Star Bulk will offset losses from the drop in Star Bulk'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 |
| Star Bulk vs. Genco Shipping Trading | Star Bulk vs. Diana Shipping | Star Bulk vs. Danaos | Star Bulk vs. Golden Ocean Group |
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.
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