Correlation Between Globus Maritime and Matson
Can any of the company-specific risk be diversified away by investing in both Globus Maritime and Matson 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 Matson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globus Maritime and Matson Inc, you can compare the effects of market volatilities on Globus Maritime and Matson 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 Matson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globus Maritime and Matson.
Diversification Opportunities for Globus Maritime and Matson
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Globus and Matson is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Globus Maritime and Matson Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matson Inc 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 Matson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matson Inc has no effect on the direction of Globus Maritime i.e., Globus Maritime and Matson go up and down completely randomly.
Pair Corralation between Globus Maritime and Matson
Given the investment horizon of 90 days Globus Maritime is expected to under-perform the Matson. In addition to that, Globus Maritime is 1.03 times more volatile than Matson Inc. It trades about -0.16 of its total potential returns per unit of risk. Matson Inc is currently generating about 0.17 per unit of volatility. If you would invest 13,332 in Matson Inc on August 31, 2024 and sell it today you would earn a total of 1,976 from holding Matson Inc or generate 14.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Globus Maritime vs. Matson Inc
Performance |
| Timeline |
| Globus Maritime |
| Matson Inc |
Globus Maritime and Matson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globus Maritime and Matson
The main advantage of trading using opposite Globus Maritime and Matson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globus Maritime position performs unexpectedly, Matson 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 Matson will offset losses from the drop in Matson'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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stocks Directory Find actively traded stocks across global markets |