Correlation Between Global Ship and World Houseware
Can any of the company-specific risk be diversified away by investing in both Global Ship and World Houseware 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 World Houseware 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 World Houseware Limited, you can compare the effects of market volatilities on Global Ship and World Houseware 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 World Houseware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and World Houseware.
Diversification Opportunities for Global Ship and World Houseware
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and World is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and World Houseware Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on World Houseware 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 World Houseware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of World Houseware has no effect on the direction of Global Ship i.e., Global Ship and World Houseware go up and down completely randomly.
Pair Corralation between Global Ship and World Houseware
Assuming the 90 days trading horizon Global Ship is expected to generate 5.21 times less return on investment than World Houseware. But when comparing it to its historical volatility, Global Ship Lease is 4.56 times less risky than World Houseware. It trades about 0.05 of its potential returns per unit of risk. World Houseware Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3.00 in World Houseware Limited on September 2, 2024 and sell it today you would earn a total of 2.00 from holding World Houseware Limited or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Global Ship Lease vs. World Houseware Limited
Performance |
| Timeline |
| Global Ship Lease |
| World Houseware |
Global Ship and World Houseware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and World Houseware
The main advantage of trading using opposite Global Ship and World Houseware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship position performs unexpectedly, World Houseware 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 World Houseware will offset losses from the drop in World Houseware's long position.| Global Ship vs. Safe Bulkers | Global Ship vs. Diana Shipping | Global Ship vs. Costamare | Global Ship vs. Safe Bulkers |
| World Houseware vs. Trane Technologies plc | World Houseware vs. Carrier Global Corp | World Houseware vs. Johnson Controls International | World Houseware vs. Compagnie de Saint Gobain |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Transaction History View history of all your transactions and understand their impact on performance |