Correlation Between First Ship and Southern California
Can any of the company-specific risk be diversified away by investing in both First Ship and Southern California 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 Southern California 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 Southern California Gas, you can compare the effects of market volatilities on First Ship and Southern California 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 Southern California. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and Southern California.
Diversification Opportunities for First Ship and Southern California
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Southern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease and Southern California Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern California Gas 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 Southern California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern California Gas has no effect on the direction of First Ship i.e., First Ship and Southern California go up and down completely randomly.
Pair Corralation between First Ship and Southern California
If you would invest 2,543 in Southern California Gas on September 3, 2024 and sell it today you would earn a total of 7.00 from holding Southern California Gas or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
First Ship Lease vs. Southern California Gas
Performance |
| Timeline |
| First Ship Lease |
| Southern California Gas |
First Ship and Southern California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and Southern California
The main advantage of trading using opposite First Ship and Southern California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship position performs unexpectedly, Southern California 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 Southern California will offset losses from the drop in Southern California's long position.| First Ship vs. Broadstone Net Lease | First Ship vs. Global Ship Lease | First Ship vs. Flex | First Ship vs. Emerson Radio |
| Southern California vs. United Rentals | Southern California vs. First Ship Lease | Southern California vs. China Aircraft Leasing | Southern California vs. Playa Hotels Resorts |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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