Correlation Between First Ship and NWIDE
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By analyzing existing cross correlation between First Ship Lease and NWIDE 4 14 SEP 26, you can compare the effects of market volatilities on First Ship and NWIDE 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 NWIDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and NWIDE.
Diversification Opportunities for First Ship and NWIDE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and NWIDE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease and NWIDE 4 14 SEP 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NWIDE 4 14 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 NWIDE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NWIDE 4 14 has no effect on the direction of First Ship i.e., First Ship and NWIDE go up and down completely randomly.
Pair Corralation between First Ship and NWIDE
Assuming the 90 days horizon First Ship Lease is expected to generate 3.15 times more return on investment than NWIDE. However, First Ship is 3.15 times more volatile than NWIDE 4 14 SEP 26. It trades about 0.04 of its potential returns per unit of risk. NWIDE 4 14 SEP 26 is currently generating about 0.0 per unit of risk. If you would invest 2.50 in First Ship Lease on September 4, 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 | 24.44% |
| Values | Daily Returns |
First Ship Lease vs. NWIDE 4 14 SEP 26
Performance |
| Timeline |
| First Ship Lease |
| NWIDE 4 14 |
First Ship and NWIDE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and NWIDE
The main advantage of trading using opposite First Ship and NWIDE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship position performs unexpectedly, NWIDE 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 NWIDE will offset losses from the drop in NWIDE's long position.| First Ship vs. NL Industries | First Ship vs. Stepan Company | First Ship vs. BCE Inc | First Ship vs. Getty Images 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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