Correlation Between First Ship and 00131LAF2
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By analyzing existing cross correlation between First Ship Lease and AIA 39 06 APR 28, you can compare the effects of market volatilities on First Ship and 00131LAF2 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 00131LAF2. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and 00131LAF2.
Diversification Opportunities for First Ship and 00131LAF2
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and 00131LAF2 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease and AIA 39 06 APR 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIA 06 APR 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 00131LAF2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIA 06 APR has no effect on the direction of First Ship i.e., First Ship and 00131LAF2 go up and down completely randomly.
Pair Corralation between First Ship and 00131LAF2
Assuming the 90 days horizon First Ship Lease is expected to generate 4.14 times more return on investment than 00131LAF2. However, First Ship is 4.14 times more volatile than AIA 39 06 APR 28. It trades about 0.04 of its potential returns per unit of risk. AIA 39 06 APR 28 is currently generating about 0.08 per unit of risk. If you would invest 2.50 in First Ship Lease on September 3, 2024 and sell it today you would earn a total of 1.50 from holding First Ship Lease or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 10.28% |
| Values | Daily Returns |
First Ship Lease vs. AIA 39 06 APR 28
Performance |
| Timeline |
| First Ship Lease |
| AIA 06 APR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
First Ship and 00131LAF2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and 00131LAF2
The main advantage of trading using opposite First Ship and 00131LAF2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship position performs unexpectedly, 00131LAF2 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 00131LAF2 will offset losses from the drop in 00131LAF2's long position.| First Ship vs. Broadstone Net Lease | First Ship vs. Global Ship Lease | First Ship vs. Flex | First Ship vs. Emerson Radio |
| 00131LAF2 vs. First Ship Lease | 00131LAF2 vs. Mitsubishi UFJ Lease | 00131LAF2 vs. The Coca Cola | 00131LAF2 vs. Celsius Holdings |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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