Correlation Between FIRST SHIP and CNVISION MEDIA
Can any of the company-specific risk be diversified away by investing in both FIRST SHIP and CNVISION MEDIA 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 CNVISION MEDIA 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 CNVISION MEDIA, you can compare the effects of market volatilities on FIRST SHIP and CNVISION MEDIA 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 CNVISION MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIRST SHIP and CNVISION MEDIA.
Diversification Opportunities for FIRST SHIP and CNVISION MEDIA
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FIRST and CNVISION is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding FIRST SHIP LEASE and CNVISION MEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNVISION MEDIA 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 CNVISION MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNVISION MEDIA has no effect on the direction of FIRST SHIP i.e., FIRST SHIP and CNVISION MEDIA go up and down completely randomly.
Pair Corralation between FIRST SHIP and CNVISION MEDIA
Assuming the 90 days horizon FIRST SHIP LEASE is expected to under-perform the CNVISION MEDIA. But the stock apears to be less risky and, when comparing its historical volatility, FIRST SHIP LEASE is 1.62 times less risky than CNVISION MEDIA. The stock trades about -0.06 of its potential returns per unit of risk. The CNVISION MEDIA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5.60 in CNVISION MEDIA on November 6, 2024 and sell it today you would earn a total of 0.15 from holding CNVISION MEDIA or generate 2.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIRST SHIP LEASE vs. CNVISION MEDIA
Performance |
| Timeline |
| FIRST SHIP LEASE |
| CNVISION MEDIA |
FIRST SHIP and CNVISION MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIRST SHIP and CNVISION MEDIA
The main advantage of trading using opposite FIRST SHIP and CNVISION MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIRST SHIP position performs unexpectedly, CNVISION MEDIA 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 CNVISION MEDIA will offset losses from the drop in CNVISION MEDIA's long position.| FIRST SHIP vs. COSCO SHIPPING Holdings | FIRST SHIP vs. Hapag Lloyd AG | FIRST SHIP vs. Orient Overseas Limited | FIRST SHIP vs. Mitsui OSK Lines |
| CNVISION MEDIA vs. Luckin Coffee | CNVISION MEDIA vs. Virtus Investment Partners | CNVISION MEDIA vs. American Airlines Group | CNVISION MEDIA vs. SLR Investment Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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