Correlation Between Global Ship and Continental Resources
Can any of the company-specific risk be diversified away by investing in both Global Ship and Continental Resources 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 Continental Resources 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 Continental Resources, you can compare the effects of market volatilities on Global Ship and Continental Resources 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 Continental Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and Continental Resources.
Diversification Opportunities for Global Ship and Continental Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Continental is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and Continental Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Continental Resources 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 Continental Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Continental Resources has no effect on the direction of Global Ship i.e., Global Ship and Continental Resources go up and down completely randomly.
Pair Corralation between Global Ship and Continental Resources
If you would invest 2,617 in Global Ship Lease on September 5, 2024 and sell it today you would earn a total of 20.00 from holding Global Ship Lease or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Global Ship Lease vs. Continental Resources
Performance |
| Timeline |
| Global Ship Lease |
| Continental Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global Ship and Continental Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and Continental Resources
The main advantage of trading using opposite Global Ship and Continental Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship position performs unexpectedly, Continental Resources 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 Continental Resources will offset losses from the drop in Continental Resources' long position.| Global Ship vs. Safe Bulkers | Global Ship vs. Diana Shipping | Global Ship vs. Costamare | Global Ship vs. Safe Bulkers |
| Continental Resources vs. Global Ship Lease | Continental Resources vs. Air Lease | Continental Resources vs. ON Semiconductor | Continental Resources vs. Elmos Semiconductor SE |
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 Stocks Directory module to find actively traded stocks across global markets.
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