Correlation Between Golden Ocean and Toro
Can any of the company-specific risk be diversified away by investing in both Golden Ocean and Toro 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 Toro 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 Toro, you can compare the effects of market volatilities on Golden Ocean and Toro 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 Toro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Ocean and Toro.
Diversification Opportunities for Golden Ocean and Toro
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Golden and Toro is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Golden Ocean Group and Toro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toro 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 Toro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toro has no effect on the direction of Golden Ocean i.e., Golden Ocean and Toro go up and down completely randomly.
Pair Corralation between Golden Ocean and Toro
Given the investment horizon of 90 days Golden Ocean Group is expected to generate 0.75 times more return on investment than Toro. However, Golden Ocean Group is 1.33 times less risky than Toro. It trades about -0.09 of its potential returns per unit of risk. Toro is currently generating about -0.27 per unit of risk. If you would invest 1,069 in Golden Ocean Group on August 31, 2024 and sell it today you would lose (60.00) from holding Golden Ocean Group or give up 5.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Ocean Group vs. Toro
Performance |
| Timeline |
| Golden Ocean Group |
| Toro |
Golden Ocean and Toro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Ocean and Toro
The main advantage of trading using opposite Golden Ocean and Toro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Ocean position performs unexpectedly, Toro 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 Toro will offset losses from the drop in Toro'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 |
| Toro vs. Seanergy Maritime Holdings | Toro vs. Globus Maritime | Toro vs. TOP Ships | Toro vs. Diana Shipping |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| 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 |