Correlation Between StealthGas and Euroseas
Can any of the company-specific risk be diversified away by investing in both StealthGas and Euroseas 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 StealthGas and Euroseas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between StealthGas and Euroseas, you can compare the effects of market volatilities on StealthGas and Euroseas 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 StealthGas with a short position of Euroseas. Check out your portfolio center. Please also check ongoing floating volatility patterns of StealthGas and Euroseas.
Diversification Opportunities for StealthGas and Euroseas
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between StealthGas and Euroseas is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding StealthGas and Euroseas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euroseas and StealthGas 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 StealthGas are associated (or correlated) with Euroseas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euroseas has no effect on the direction of StealthGas i.e., StealthGas and Euroseas go up and down completely randomly.
Pair Corralation between StealthGas and Euroseas
Given the investment horizon of 90 days StealthGas is expected to generate 0.93 times more return on investment than Euroseas. However, StealthGas is 1.08 times less risky than Euroseas. It trades about 0.0 of its potential returns per unit of risk. Euroseas is currently generating about -0.03 per unit of risk. If you would invest 592.00 in StealthGas on August 28, 2024 and sell it today you would lose (11.00) from holding StealthGas or give up 1.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
StealthGas vs. Euroseas
Performance |
| Timeline |
| StealthGas |
| Euroseas |
StealthGas and Euroseas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with StealthGas and Euroseas
The main advantage of trading using opposite StealthGas and Euroseas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StealthGas position performs unexpectedly, Euroseas 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 Euroseas will offset losses from the drop in Euroseas' long position.| StealthGas vs. Danaos | StealthGas vs. Global Ship Lease | StealthGas vs. Euroseas | StealthGas vs. Navios Maritime Partners |
| Euroseas vs. Star Bulk Carriers | Euroseas vs. TOP Ships | Euroseas vs. Seanergy Maritime Holdings | Euroseas vs. Performance Shipping |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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