Correlation Between GRENKELEASING and Global Ship
Can any of the company-specific risk be diversified away by investing in both GRENKELEASING and Global Ship 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 GRENKELEASING and Global Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRENKELEASING Dusseldorf and Global Ship Lease, you can compare the effects of market volatilities on GRENKELEASING and Global Ship 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 GRENKELEASING with a short position of Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRENKELEASING and Global Ship.
Diversification Opportunities for GRENKELEASING and Global Ship
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRENKELEASING and Global is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding GRENKELEASING Dusseldorf and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease and GRENKELEASING 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 GRENKELEASING Dusseldorf are associated (or correlated) with Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of GRENKELEASING i.e., GRENKELEASING and Global Ship go up and down completely randomly.
Pair Corralation between GRENKELEASING and Global Ship
Assuming the 90 days trading horizon GRENKELEASING Dusseldorf is expected to generate 0.88 times more return on investment than Global Ship. However, GRENKELEASING Dusseldorf is 1.13 times less risky than Global Ship. It trades about 0.25 of its potential returns per unit of risk. Global Ship Lease is currently generating about 0.06 per unit of risk. If you would invest 1,550 in GRENKELEASING Dusseldorf on October 11, 2024 and sell it today you would earn a total of 132.00 from holding GRENKELEASING Dusseldorf or generate 8.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRENKELEASING Dusseldorf vs. Global Ship Lease
Performance |
| Timeline |
| GRENKELEASING Duss |
| Global Ship Lease |
GRENKELEASING and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRENKELEASING and Global Ship
The main advantage of trading using opposite GRENKELEASING and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRENKELEASING position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship's long position.| GRENKELEASING vs. Chesapeake Utilities | GRENKELEASING vs. Haier Smart Home | GRENKELEASING vs. Focus Home Interactive | GRENKELEASING vs. GREENX METALS LTD |
| Global Ship vs. CEOTRONICS | Global Ship vs. Coor Service Management | Global Ship vs. Pure Storage | Global Ship vs. LANDSEA GREEN MANAGEMENT |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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