Correlation Between First Ship and Eastern
Can any of the company-specific risk be diversified away by investing in both First Ship and Eastern 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 First Ship and Eastern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Ship Lease and Eastern Co, you can compare the effects of market volatilities on First Ship and Eastern 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 First Ship with a short position of Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and Eastern.
Diversification Opportunities for First Ship and Eastern
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Eastern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease and Eastern Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern and First Ship 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 First Ship Lease are associated (or correlated) with Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern has no effect on the direction of First Ship i.e., First Ship and Eastern go up and down completely randomly.
Pair Corralation between First Ship and Eastern
If you would invest 4.00 in First Ship Lease on September 1, 2024 and sell it today you would earn a total of 0.00 from holding First Ship Lease or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
First Ship Lease vs. Eastern Co
Performance |
| Timeline |
| First Ship Lease |
| Eastern |
First Ship and Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and Eastern
The main advantage of trading using opposite First Ship and Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship position performs unexpectedly, Eastern 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 Eastern will offset losses from the drop in Eastern's long position.| First Ship vs. WiMi Hologram Cloud | First Ship vs. Summit Materials | First Ship vs. Asure Software | First Ship vs. Casio Computer Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| CEOs Directory Screen CEOs from public companies around the world |