Correlation Between Golden Ocean and Ardmore Shpng
Can any of the company-specific risk be diversified away by investing in both Golden Ocean and Ardmore Shpng 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 Golden Ocean and Ardmore Shpng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Ocean Group and Ardmore Shpng, you can compare the effects of market volatilities on Golden Ocean and Ardmore Shpng 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 Golden Ocean with a short position of Ardmore Shpng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Ocean and Ardmore Shpng.
Diversification Opportunities for Golden Ocean and Ardmore Shpng
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Golden and Ardmore is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Golden Ocean Group and Ardmore Shpng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ardmore Shpng and Golden Ocean 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 Golden Ocean Group are associated (or correlated) with Ardmore Shpng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ardmore Shpng has no effect on the direction of Golden Ocean i.e., Golden Ocean and Ardmore Shpng go up and down completely randomly.
Pair Corralation between Golden Ocean and Ardmore Shpng
Given the investment horizon of 90 days Golden Ocean Group is expected to generate 1.11 times more return on investment than Ardmore Shpng. However, Golden Ocean is 1.11 times more volatile than Ardmore Shpng. It trades about 0.1 of its potential returns per unit of risk. Ardmore Shpng is currently generating about -0.47 per unit of risk. If you would invest 1,062 in Golden Ocean Group on August 28, 2024 and sell it today you would earn a total of 46.00 from holding Golden Ocean Group or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Ocean Group vs. Ardmore Shpng
Performance |
| Timeline |
| Golden Ocean Group |
| Ardmore Shpng |
Golden Ocean and Ardmore Shpng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Ocean and Ardmore Shpng
The main advantage of trading using opposite Golden Ocean and Ardmore Shpng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Ocean position performs unexpectedly, Ardmore Shpng 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 Ardmore Shpng will offset losses from the drop in Ardmore Shpng's long position.| Golden Ocean vs. Genco Shipping Trading | Golden Ocean vs. Global Ship Lease | Golden Ocean vs. Diana Shipping | Golden Ocean vs. Star Bulk Carriers |
| Ardmore Shpng vs. Danaos | Ardmore Shpng vs. Global Ship Lease | Ardmore Shpng vs. Euroseas | Ardmore Shpng vs. Navios Maritime Partners |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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