Correlation Between Global Ship and Pyxis Tankers
Can any of the company-specific risk be diversified away by investing in both Global Ship and Pyxis Tankers 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 Pyxis Tankers 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 Pyxis Tankers, you can compare the effects of market volatilities on Global Ship and Pyxis Tankers 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 Pyxis Tankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and Pyxis Tankers.
Diversification Opportunities for Global Ship and Pyxis Tankers
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Global and Pyxis is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and Pyxis Tankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyxis Tankers 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 Pyxis Tankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyxis Tankers has no effect on the direction of Global Ship i.e., Global Ship and Pyxis Tankers go up and down completely randomly.
Pair Corralation between Global Ship and Pyxis Tankers
Considering the 90-day investment horizon Global Ship Lease is expected to generate 0.78 times more return on investment than Pyxis Tankers. However, Global Ship Lease is 1.27 times less risky than Pyxis Tankers. It trades about 0.06 of its potential returns per unit of risk. Pyxis Tankers is currently generating about 0.02 per unit of risk. If you would invest 1,631 in Global Ship Lease on August 27, 2024 and sell it today you would earn a total of 595.00 from holding Global Ship Lease or generate 36.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Ship Lease vs. Pyxis Tankers
Performance |
| Timeline |
| Global Ship Lease |
| Pyxis Tankers |
Global Ship and Pyxis Tankers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and Pyxis Tankers
The main advantage of trading using opposite Global Ship and Pyxis Tankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship position performs unexpectedly, Pyxis Tankers 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 Pyxis Tankers will offset losses from the drop in Pyxis Tankers' long position.| Global Ship vs. Costamare | Global Ship vs. Navios Maritime Partners | Global Ship vs. Genco Shipping Trading | Global Ship vs. Star Bulk Carriers |
| Pyxis Tankers vs. EuroDry | Pyxis Tankers vs. Costamare | Pyxis Tankers vs. Global Ship Lease | Pyxis Tankers vs. Danaos |
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.
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