Correlation Between First Ship and Rocky Brands
Can any of the company-specific risk be diversified away by investing in both First Ship and Rocky Brands 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 Rocky Brands 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 Rocky Brands, you can compare the effects of market volatilities on First Ship and Rocky Brands 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 Rocky Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and Rocky Brands.
Diversification Opportunities for First Ship and Rocky Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Rocky is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease and Rocky Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rocky Brands 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 Rocky Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rocky Brands has no effect on the direction of First Ship i.e., First Ship and Rocky Brands go up and down completely randomly.
Pair Corralation between First Ship and Rocky Brands
If you would invest 2,284 in Rocky Brands on October 21, 2024 and sell it today you would earn a total of 133.00 from holding Rocky Brands or generate 5.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
First Ship Lease vs. Rocky Brands
Performance |
| Timeline |
| First Ship Lease |
| Rocky Brands |
First Ship and Rocky Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and Rocky Brands
The main advantage of trading using opposite First Ship and Rocky Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship position performs unexpectedly, Rocky Brands 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 Rocky Brands will offset losses from the drop in Rocky Brands' long position.| First Ship vs. Academy Sports Outdoors | First Ship vs. Canlan Ice Sports | First Ship vs. Black Spade Acquisition | First Ship vs. BRP Inc |
| Rocky Brands vs. Vera Bradley | Rocky Brands vs. Steven Madden | Rocky Brands vs. Wolverine World Wide | Rocky Brands vs. Caleres |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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