Correlation Between Grindrod Shipping and Navios Maritime
Can any of the company-specific risk be diversified away by investing in both Grindrod Shipping and Navios Maritime 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 Grindrod Shipping and Navios Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grindrod Shipping Holdings and Navios Maritime Partners, you can compare the effects of market volatilities on Grindrod Shipping and Navios Maritime 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 Grindrod Shipping with a short position of Navios Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grindrod Shipping and Navios Maritime.
Diversification Opportunities for Grindrod Shipping and Navios Maritime
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grindrod and Navios is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grindrod Shipping Holdings and Navios Maritime Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navios Maritime Partners and Grindrod Shipping 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 Grindrod Shipping Holdings are associated (or correlated) with Navios Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navios Maritime Partners has no effect on the direction of Grindrod Shipping i.e., Grindrod Shipping and Navios Maritime go up and down completely randomly.
Pair Corralation between Grindrod Shipping and Navios Maritime
If you would invest 2,887 in Navios Maritime Partners on November 9, 2024 and sell it today you would earn a total of 1,468 from holding Navios Maritime Partners or generate 50.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Grindrod Shipping Holdings vs. Navios Maritime Partners
Performance |
| Timeline |
| Grindrod Shipping |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Navios Maritime Partners |
Grindrod Shipping and Navios Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grindrod Shipping and Navios Maritime
The main advantage of trading using opposite Grindrod Shipping and Navios Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grindrod Shipping position performs unexpectedly, Navios Maritime 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 Navios Maritime will offset losses from the drop in Navios Maritime's long position.| Grindrod Shipping vs. Star Bulk Carriers | Grindrod Shipping vs. Golden Ocean Group | Grindrod Shipping vs. Global Ship Lease | Grindrod Shipping vs. Diana Shipping |
| Navios Maritime vs. Global Ship Lease | Navios Maritime vs. Costamare | Navios Maritime vs. Genco Shipping Trading | Navios Maritime vs. Danaos |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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