Correlation Between Global Ship and 67021CAS6
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By analyzing existing cross correlation between Global Ship Lease and ES 455 01 JUN 52, you can compare the effects of market volatilities on Global Ship and 67021CAS6 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 67021CAS6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and 67021CAS6.
Diversification Opportunities for Global Ship and 67021CAS6
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Global and 67021CAS6 is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and ES 455 01 JUN 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ES 455 01 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 67021CAS6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ES 455 01 has no effect on the direction of Global Ship i.e., Global Ship and 67021CAS6 go up and down completely randomly.
Pair Corralation between Global Ship and 67021CAS6
Assuming the 90 days trading horizon Global Ship is expected to generate 3.79 times less return on investment than 67021CAS6. But when comparing it to its historical volatility, Global Ship Lease is 1.77 times less risky than 67021CAS6. It trades about 0.04 of its potential returns per unit of risk. ES 455 01 JUN 52 is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 8,647 in ES 455 01 JUN 52 on September 13, 2024 and sell it today you would earn a total of 707.00 from holding ES 455 01 JUN 52 or generate 8.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 55.65% |
| Values | Daily Returns |
Global Ship Lease vs. ES 455 01 JUN 52
Performance |
| Timeline |
| Global Ship Lease |
| ES 455 01 |
Global Ship and 67021CAS6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and 67021CAS6
The main advantage of trading using opposite Global Ship and 67021CAS6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship position performs unexpectedly, 67021CAS6 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 67021CAS6 will offset losses from the drop in 67021CAS6'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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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