Correlation Between Globus Maritime and Caravelle International
Can any of the company-specific risk be diversified away by investing in both Globus Maritime and Caravelle International 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 Globus Maritime and Caravelle International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globus Maritime and Caravelle International Group, you can compare the effects of market volatilities on Globus Maritime and Caravelle International 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 Globus Maritime with a short position of Caravelle International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globus Maritime and Caravelle International.
Diversification Opportunities for Globus Maritime and Caravelle International
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Globus and Caravelle is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Globus Maritime and Caravelle International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caravelle International and Globus Maritime 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 Globus Maritime are associated (or correlated) with Caravelle International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caravelle International has no effect on the direction of Globus Maritime i.e., Globus Maritime and Caravelle International go up and down completely randomly.
Pair Corralation between Globus Maritime and Caravelle International
Given the investment horizon of 90 days Globus Maritime is expected to under-perform the Caravelle International. But the stock apears to be less risky and, when comparing its historical volatility, Globus Maritime is 1.5 times less risky than Caravelle International. The stock trades about -0.16 of its potential returns per unit of risk. The Caravelle International Group is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 101.00 in Caravelle International Group on August 28, 2024 and sell it today you would earn a total of 30.00 from holding Caravelle International Group or generate 29.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globus Maritime vs. Caravelle International Group
Performance |
| Timeline |
| Globus Maritime |
| Caravelle International |
Globus Maritime and Caravelle International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globus Maritime and Caravelle International
The main advantage of trading using opposite Globus Maritime and Caravelle International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globus Maritime position performs unexpectedly, Caravelle International 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 Caravelle International will offset losses from the drop in Caravelle International's long position.| Globus Maritime vs. Star Bulk Carriers | Globus Maritime vs. TOP Ships | Globus Maritime vs. Seanergy Maritime Holdings | Globus Maritime vs. Performance Shipping |
| Caravelle International vs. Oceanpal | Caravelle International vs. Safe Bulkers | Caravelle International vs. Safe Bulkers | Caravelle International vs. Safe Bulkers |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |