Correlation Between First Ship and CIMG
Can any of the company-specific risk be diversified away by investing in both First Ship and CIMG 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 CIMG 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 CIMG Inc, you can compare the effects of market volatilities on First Ship and CIMG 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 CIMG. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and CIMG.
Diversification Opportunities for First Ship and CIMG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and CIMG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease and CIMG Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMG Inc 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 CIMG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMG Inc has no effect on the direction of First Ship i.e., First Ship and CIMG go up and down completely randomly.
Pair Corralation between First Ship and CIMG
If you would invest 4.00 in First Ship Lease on August 28, 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 | 100.0% |
| Values | Daily Returns |
First Ship Lease vs. CIMG Inc
Performance |
| Timeline |
| First Ship Lease |
| CIMG Inc |
First Ship and CIMG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and CIMG
The main advantage of trading using opposite First Ship and CIMG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship position performs unexpectedly, CIMG 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 CIMG will offset losses from the drop in CIMG's long position.| First Ship vs. United Rentals | First Ship vs. AerCap Holdings NV | First Ship vs. Fortress Transp Infra | First Ship vs. U Haul Holding |
| CIMG vs. RLX Technology | CIMG vs. First Ship Lease | CIMG vs. Willamette Valley Vineyards | CIMG vs. Keurig Dr Pepper |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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