Correlation Between FIRST SHIP and Khiron Life
Can any of the company-specific risk be diversified away by investing in both FIRST SHIP and Khiron Life 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 FIRST SHIP and Khiron Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIRST SHIP LEASE and Khiron Life Sciences, you can compare the effects of market volatilities on FIRST SHIP and Khiron Life 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 FIRST SHIP with a short position of Khiron Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIRST SHIP and Khiron Life.
Diversification Opportunities for FIRST SHIP and Khiron Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FIRST and Khiron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FIRST SHIP LEASE and Khiron Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Khiron Life Sciences and FIRST 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 FIRST SHIP LEASE are associated (or correlated) with Khiron Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Khiron Life Sciences has no effect on the direction of FIRST SHIP i.e., FIRST SHIP and Khiron Life go up and down completely randomly.
Pair Corralation between FIRST SHIP and Khiron Life
If you would invest 1.70 in FIRST SHIP LEASE on November 2, 2024 and sell it today you would earn a total of 0.68 from holding FIRST SHIP LEASE or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIRST SHIP LEASE vs. Khiron Life Sciences
Performance |
| Timeline |
| FIRST SHIP LEASE |
| Khiron Life Sciences |
FIRST SHIP and Khiron Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIRST SHIP and Khiron Life
The main advantage of trading using opposite FIRST SHIP and Khiron Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIRST SHIP position performs unexpectedly, Khiron Life 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 Khiron Life will offset losses from the drop in Khiron Life's long position.| FIRST SHIP vs. HUTCHISON TELECOMM | FIRST SHIP vs. Chesapeake Utilities | FIRST SHIP vs. Iridium Communications | FIRST SHIP vs. Spirent Communications plc |
| Khiron Life vs. OPKO HEALTH | Khiron Life vs. CARDINAL HEALTH | Khiron Life vs. Laureate Education | Khiron Life vs. RCI Hospitality Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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