Correlation Between Globus Maritime and Kirby
Can any of the company-specific risk be diversified away by investing in both Globus Maritime and Kirby 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 Kirby into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globus Maritime and Kirby, you can compare the effects of market volatilities on Globus Maritime and Kirby 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 Kirby. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globus Maritime and Kirby.
Diversification Opportunities for Globus Maritime and Kirby
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Globus and Kirby is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Globus Maritime and Kirby in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirby 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 Kirby. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirby has no effect on the direction of Globus Maritime i.e., Globus Maritime and Kirby go up and down completely randomly.
Pair Corralation between Globus Maritime and Kirby
Given the investment horizon of 90 days Globus Maritime is expected to under-perform the Kirby. In addition to that, Globus Maritime is 1.84 times more volatile than Kirby. It trades about -0.16 of its total potential returns per unit of risk. Kirby is currently generating about 0.2 per unit of volatility. If you would invest 11,559 in Kirby on August 31, 2024 and sell it today you would earn a total of 1,077 from holding Kirby or generate 9.32% 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. Kirby
Performance |
| Timeline |
| Globus Maritime |
| Kirby |
Globus Maritime and Kirby Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globus Maritime and Kirby
The main advantage of trading using opposite Globus Maritime and Kirby positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globus Maritime position performs unexpectedly, Kirby 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 Kirby will offset losses from the drop in Kirby's long position.| Globus Maritime vs. Seanergy Maritime Holdings | Globus Maritime vs. United Maritime | Globus Maritime vs. Performance Shipping | Globus Maritime vs. Castor Maritime |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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