Correlation Between Navios Maritime and Cool
Can any of the company-specific risk be diversified away by investing in both Navios Maritime and Cool 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 Navios Maritime and Cool into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Navios Maritime Holdings and Cool Company, you can compare the effects of market volatilities on Navios Maritime and Cool 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 Navios Maritime with a short position of Cool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navios Maritime and Cool.
Diversification Opportunities for Navios Maritime and Cool
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Navios and Cool is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Navios Maritime Holdings and Cool Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cool Company and Navios Maritime 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 Navios Maritime Holdings are associated (or correlated) with Cool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cool Company has no effect on the direction of Navios Maritime i.e., Navios Maritime and Cool go up and down completely randomly.
Pair Corralation between Navios Maritime and Cool
If you would invest 174.00 in Navios Maritime Holdings on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Navios Maritime Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Navios Maritime Holdings vs. Cool Company
Performance |
| Timeline |
| Navios Maritime Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cool Company |
Navios Maritime and Cool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navios Maritime and Cool
The main advantage of trading using opposite Navios Maritime and Cool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navios Maritime position performs unexpectedly, Cool 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 Cool will offset losses from the drop in Cool's long position.| Navios Maritime vs. Diana Shipping | Navios Maritime vs. Genco Shipping Trading | Navios Maritime vs. Navios Maritime Partners | Navios Maritime vs. Euroseas |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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