Correlation Between Global Ship and Abacus Life,
Can any of the company-specific risk be diversified away by investing in both Global Ship and Abacus Life, 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 Global Ship and Abacus Life, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Ship Lease and Abacus Life, 9875, you can compare the effects of market volatilities on Global Ship and Abacus Life, 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 Global Ship with a short position of Abacus Life,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and Abacus Life,.
Diversification Opportunities for Global Ship and Abacus Life,
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Abacus is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and Abacus Life, 9875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abacus Life, 9875 and Global Ship 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 Global Ship Lease are associated (or correlated) with Abacus Life,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abacus Life, 9875 has no effect on the direction of Global Ship i.e., Global Ship and Abacus Life, go up and down completely randomly.
Pair Corralation between Global Ship and Abacus Life,
Assuming the 90 days trading horizon Global Ship is expected to generate 1.03 times less return on investment than Abacus Life,. But when comparing it to its historical volatility, Global Ship Lease is 2.03 times less risky than Abacus Life,. It trades about 0.09 of its potential returns per unit of risk. Abacus Life, 9875 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,552 in Abacus Life, 9875 on September 2, 2024 and sell it today you would earn a total of 88.00 from holding Abacus Life, 9875 or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Ship Lease vs. Abacus Life, 9875
Performance |
| Timeline |
| Global Ship Lease |
| Abacus Life, 9875 |
Global Ship and Abacus Life, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and Abacus Life,
The main advantage of trading using opposite Global Ship and Abacus Life, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship position performs unexpectedly, Abacus Life, 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 Abacus Life, will offset losses from the drop in Abacus Life,'s long position.| Global Ship vs. Safe Bulkers | Global Ship vs. Diana Shipping | Global Ship vs. Costamare | Global Ship vs. Safe Bulkers |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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