Correlation Between Global Ship and Edgewell Personal
Can any of the company-specific risk be diversified away by investing in both Global Ship and Edgewell Personal 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 Edgewell Personal 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 Edgewell Personal Care, you can compare the effects of market volatilities on Global Ship and Edgewell Personal 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 Edgewell Personal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and Edgewell Personal.
Diversification Opportunities for Global Ship and Edgewell Personal
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Global and Edgewell is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and Edgewell Personal Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgewell Personal Care 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 Edgewell Personal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgewell Personal Care has no effect on the direction of Global Ship i.e., Global Ship and Edgewell Personal go up and down completely randomly.
Pair Corralation between Global Ship and Edgewell Personal
Assuming the 90 days trading horizon Global Ship Lease is expected to generate 0.68 times more return on investment than Edgewell Personal. However, Global Ship Lease is 1.47 times less risky than Edgewell Personal. It trades about 0.05 of its potential returns per unit of risk. Edgewell Personal Care is currently generating about 0.02 per unit of risk. If you would invest 2,341 in Global Ship Lease on September 2, 2024 and sell it today you would earn a total of 295.00 from holding Global Ship Lease or generate 12.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Ship Lease vs. Edgewell Personal Care
Performance |
| Timeline |
| Global Ship Lease |
| Edgewell Personal Care |
Global Ship and Edgewell Personal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and Edgewell Personal
The main advantage of trading using opposite Global Ship and Edgewell Personal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship position performs unexpectedly, Edgewell Personal 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 Edgewell Personal will offset losses from the drop in Edgewell Personal's long position.| Global Ship vs. Safe Bulkers | Global Ship vs. Diana Shipping | Global Ship vs. Costamare | Global Ship vs. Safe Bulkers |
| Edgewell Personal vs. Seneca Foods Corp | Edgewell Personal vs. Central Garden Pet | Edgewell Personal vs. Central Garden Pet | Edgewell Personal vs. Lifeway Foods |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |