Correlation Between Golden Ocean and Capital Product
Can any of the company-specific risk be diversified away by investing in both Golden Ocean and Capital Product 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 Capital Product 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 Capital Product Partners, you can compare the effects of market volatilities on Golden Ocean and Capital Product 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 Capital Product. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Ocean and Capital Product.
Diversification Opportunities for Golden Ocean and Capital Product
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Golden and Capital is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Golden Ocean Group and Capital Product Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Product Partners 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 Capital Product. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Product Partners has no effect on the direction of Golden Ocean i.e., Golden Ocean and Capital Product go up and down completely randomly.
Pair Corralation between Golden Ocean and Capital Product
If you would invest 1,085 in Golden Ocean Group on August 26, 2024 and sell it today you would earn a total of 29.00 from holding Golden Ocean Group or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Golden Ocean Group vs. Capital Product Partners
Performance |
| Timeline |
| Golden Ocean Group |
| Capital Product Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Golden Ocean and Capital Product Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Ocean and Capital Product
The main advantage of trading using opposite Golden Ocean and Capital Product positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Ocean position performs unexpectedly, Capital Product 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 Capital Product will offset losses from the drop in Capital Product's long position.| Golden Ocean vs. Star Bulk Carriers | Golden Ocean vs. TOP Ships | Golden Ocean vs. Seanergy Maritime Holdings | Golden Ocean vs. Performance Shipping |
| Capital Product vs. Danaos | Capital Product vs. Global Ship Lease | Capital Product vs. Euroseas | Capital Product 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |