Correlation Between Himalaya Shipping and Siriuspoint
Can any of the company-specific risk be diversified away by investing in both Himalaya Shipping and Siriuspoint 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 Himalaya Shipping and Siriuspoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Himalaya Shipping and Siriuspoint, you can compare the effects of market volatilities on Himalaya Shipping and Siriuspoint 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 Himalaya Shipping with a short position of Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Himalaya Shipping and Siriuspoint.
Diversification Opportunities for Himalaya Shipping and Siriuspoint
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Himalaya and Siriuspoint is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Himalaya Shipping and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint and Himalaya Shipping 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 Himalaya Shipping are associated (or correlated) with Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of Himalaya Shipping i.e., Himalaya Shipping and Siriuspoint go up and down completely randomly.
Pair Corralation between Himalaya Shipping and Siriuspoint
Given the investment horizon of 90 days Himalaya Shipping is expected to generate 1.33 times less return on investment than Siriuspoint. In addition to that, Himalaya Shipping is 1.57 times more volatile than Siriuspoint. It trades about 0.04 of its total potential returns per unit of risk. Siriuspoint is currently generating about 0.09 per unit of volatility. If you would invest 907.00 in Siriuspoint on August 27, 2024 and sell it today you would earn a total of 651.00 from holding Siriuspoint or generate 71.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Himalaya Shipping vs. Siriuspoint
Performance |
| Timeline |
| Himalaya Shipping |
| Siriuspoint |
Himalaya Shipping and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Himalaya Shipping and Siriuspoint
The main advantage of trading using opposite Himalaya Shipping and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Himalaya Shipping position performs unexpectedly, Siriuspoint 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 Siriuspoint will offset losses from the drop in Siriuspoint's long position.| Himalaya Shipping vs. Solstad Offshore ASA | Himalaya Shipping vs. MYR Group | Himalaya Shipping vs. Chester Mining | Himalaya Shipping vs. Park Ohio Holdings |
| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |