Correlation Between Global Ship and TRAVELERS
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By analyzing existing cross correlation between Global Ship Lease and TRAVELERS INC 535, you can compare the effects of market volatilities on Global Ship and TRAVELERS 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 TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and TRAVELERS.
Diversification Opportunities for Global Ship and TRAVELERS
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Global and TRAVELERS is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and TRAVELERS INC 535 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVELERS INC 535 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 TRAVELERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVELERS INC 535 has no effect on the direction of Global Ship i.e., Global Ship and TRAVELERS go up and down completely randomly.
Pair Corralation between Global Ship and TRAVELERS
Assuming the 90 days trading horizon Global Ship is expected to generate 250.17 times less return on investment than TRAVELERS. But when comparing it to its historical volatility, Global Ship Lease is 136.92 times less risky than TRAVELERS. It trades about 0.06 of its potential returns per unit of risk. TRAVELERS INC 535 is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 10,475 in TRAVELERS INC 535 on September 5, 2024 and sell it today you would lose (801.00) from holding TRAVELERS INC 535 or give up 7.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 64.24% |
| Values | Daily Returns |
Global Ship Lease vs. TRAVELERS INC 535
Performance |
| Timeline |
| Global Ship Lease |
| TRAVELERS INC 535 |
Global Ship and TRAVELERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and TRAVELERS
The main advantage of trading using opposite Global Ship and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship position performs unexpectedly, TRAVELERS 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 TRAVELERS will offset losses from the drop in TRAVELERS's long position.| Global Ship vs. Safe Bulkers | Global Ship vs. Diana Shipping | Global Ship vs. Costamare | Global Ship vs. Safe Bulkers |
| TRAVELERS vs. Global Ship Lease | TRAVELERS vs. Lifevantage | TRAVELERS vs. First Ship Lease | TRAVELERS vs. Herc Holdings |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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