Correlation Between Euroseas and StealthGas
Can any of the company-specific risk be diversified away by investing in both Euroseas and StealthGas 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 Euroseas and StealthGas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Euroseas and StealthGas, you can compare the effects of market volatilities on Euroseas and StealthGas 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 Euroseas with a short position of StealthGas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Euroseas and StealthGas.
Diversification Opportunities for Euroseas and StealthGas
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Euroseas and StealthGas is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Euroseas and StealthGas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StealthGas and Euroseas 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 Euroseas are associated (or correlated) with StealthGas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StealthGas has no effect on the direction of Euroseas i.e., Euroseas and StealthGas go up and down completely randomly.
Pair Corralation between Euroseas and StealthGas
Given the investment horizon of 90 days Euroseas is expected to under-perform the StealthGas. In addition to that, Euroseas is 1.08 times more volatile than StealthGas. It trades about -0.03 of its total potential returns per unit of risk. StealthGas is currently generating about 0.0 per unit of volatility. If you would invest 592.00 in StealthGas on August 28, 2024 and sell it today you would lose (11.00) from holding StealthGas or give up 1.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Euroseas vs. StealthGas
Performance |
| Timeline |
| Euroseas |
| StealthGas |
Euroseas and StealthGas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Euroseas and StealthGas
The main advantage of trading using opposite Euroseas and StealthGas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Euroseas position performs unexpectedly, StealthGas 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 StealthGas will offset losses from the drop in StealthGas' long position.| Euroseas vs. Star Bulk Carriers | Euroseas vs. TOP Ships | Euroseas vs. Seanergy Maritime Holdings | Euroseas vs. Performance Shipping |
| StealthGas vs. Danaos | StealthGas vs. Global Ship Lease | StealthGas vs. Euroseas | StealthGas 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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