Correlation Between Global Ship and Grindrod Shipping
Can any of the company-specific risk be diversified away by investing in both Global Ship and Grindrod Shipping 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 Grindrod Shipping 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 Grindrod Shipping Holdings, you can compare the effects of market volatilities on Global Ship and Grindrod Shipping 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 Grindrod Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and Grindrod Shipping.
Diversification Opportunities for Global Ship and Grindrod Shipping
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Global and Grindrod is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and Grindrod Shipping Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grindrod Shipping 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 Grindrod Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grindrod Shipping has no effect on the direction of Global Ship i.e., Global Ship and Grindrod Shipping go up and down completely randomly.
Pair Corralation between Global Ship and Grindrod Shipping
If you would invest (100.00) in Grindrod Shipping Holdings on August 24, 2024 and sell it today you would earn a total of 100.00 from holding Grindrod Shipping Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Global Ship Lease vs. Grindrod Shipping Holdings
Performance |
| Timeline |
| Global Ship Lease |
| Grindrod Shipping |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global Ship and Grindrod Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and Grindrod Shipping
The main advantage of trading using opposite Global Ship and Grindrod Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship position performs unexpectedly, Grindrod Shipping 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 Grindrod Shipping will offset losses from the drop in Grindrod Shipping's long position.| Global Ship vs. Costamare | Global Ship vs. Navios Maritime Partners | Global Ship vs. Genco Shipping Trading | Global Ship vs. Star Bulk Carriers |
| Grindrod Shipping vs. Star Bulk Carriers | Grindrod Shipping vs. Golden Ocean Group | Grindrod Shipping vs. Global Ship Lease | Grindrod Shipping vs. Diana Shipping |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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