Correlation Between Euroseas and SFL
Can any of the company-specific risk be diversified away by investing in both Euroseas and SFL 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 SFL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Euroseas and SFL Corporation, you can compare the effects of market volatilities on Euroseas and SFL 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 SFL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Euroseas and SFL.
Diversification Opportunities for Euroseas and SFL
Good diversification
The 3 months correlation between Euroseas and SFL is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Euroseas and SFL Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFL Corporation 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 SFL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFL Corporation has no effect on the direction of Euroseas i.e., Euroseas and SFL go up and down completely randomly.
Pair Corralation between Euroseas and SFL
Given the investment horizon of 90 days Euroseas is expected to under-perform the SFL. In addition to that, Euroseas is 2.09 times more volatile than SFL Corporation. It trades about -0.02 of its total potential returns per unit of risk. SFL Corporation is currently generating about 0.02 per unit of volatility. If you would invest 1,038 in SFL Corporation on November 3, 2024 and sell it today you would earn a total of 17.00 from holding SFL Corporation or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Euroseas vs. SFL Corp.
Performance |
| Timeline |
| Euroseas |
| SFL Corporation |
Euroseas and SFL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Euroseas and SFL
The main advantage of trading using opposite Euroseas and SFL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Euroseas position performs unexpectedly, SFL 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 SFL will offset losses from the drop in SFL's long position.| Euroseas vs. Pyxis Tankers | Euroseas vs. Pacific Basin Shipping | Euroseas vs. dAmico International Shipping | Euroseas vs. Danaos |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world |