Correlation Between Kirby and StealthGas
Can any of the company-specific risk be diversified away by investing in both Kirby and StealthGas 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 Kirby and StealthGas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kirby and StealthGas, you can compare the effects of market volatilities on Kirby and StealthGas 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 Kirby with a short position of StealthGas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kirby and StealthGas.
Diversification Opportunities for Kirby and StealthGas
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kirby and StealthGas is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Kirby and StealthGas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StealthGas and Kirby 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 Kirby are associated (or correlated) with StealthGas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StealthGas has no effect on the direction of Kirby i.e., Kirby and StealthGas go up and down completely randomly.
Pair Corralation between Kirby and StealthGas
Considering the 90-day investment horizon Kirby is expected to generate 0.89 times more return on investment than StealthGas. However, Kirby is 1.12 times less risky than StealthGas. It trades about 0.2 of its potential returns per unit of risk. StealthGas is currently generating about -0.07 per unit of risk. If you would invest 11,559 in Kirby on August 31, 2024 and sell it today you would earn a total of 1,077 from holding Kirby or generate 9.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kirby vs. StealthGas
Performance |
| Timeline |
| Kirby |
| StealthGas |
Kirby and StealthGas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kirby and StealthGas
The main advantage of trading using opposite Kirby and StealthGas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirby position performs unexpectedly, StealthGas 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 StealthGas will offset losses from the drop in StealthGas' long position.The idea behind Kirby and StealthGas pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| StealthGas vs. Danaos | StealthGas vs. Global Ship Lease | StealthGas vs. Euroseas | StealthGas vs. Navios Maritime Partners |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |