Correlation Between Navios Maritime and Eagle Bulk
Can any of the company-specific risk be diversified away by investing in both Navios Maritime and Eagle Bulk 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 Eagle Bulk 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 Eagle Bulk Shipping, you can compare the effects of market volatilities on Navios Maritime and Eagle Bulk 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 Eagle Bulk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navios Maritime and Eagle Bulk.
Diversification Opportunities for Navios Maritime and Eagle Bulk
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Navios and Eagle is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Navios Maritime Holdings and Eagle Bulk Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Bulk Shipping 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 Eagle Bulk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Bulk Shipping has no effect on the direction of Navios Maritime i.e., Navios Maritime and Eagle Bulk go up and down completely randomly.
Pair Corralation between Navios Maritime and Eagle Bulk
Allowing for the 90-day total investment horizon Navios Maritime Holdings is expected to generate 1.68 times more return on investment than Eagle Bulk. However, Navios Maritime is 1.68 times more volatile than Eagle Bulk Shipping. It trades about 0.0 of its potential returns per unit of risk. Eagle Bulk Shipping is currently generating about -0.01 per unit of risk. If you would invest 182.00 in Navios Maritime Holdings on August 24, 2024 and sell it today you would lose (8.00) from holding Navios Maritime Holdings or give up 4.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Navios Maritime Holdings vs. Eagle Bulk Shipping
Performance |
| Timeline |
| Navios Maritime Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eagle Bulk Shipping |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Navios Maritime and Eagle Bulk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navios Maritime and Eagle Bulk
The main advantage of trading using opposite Navios Maritime and Eagle Bulk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navios Maritime position performs unexpectedly, Eagle Bulk 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 Eagle Bulk will offset losses from the drop in Eagle Bulk's long position.| Navios Maritime vs. Diana Shipping | Navios Maritime vs. Genco Shipping Trading | Navios Maritime vs. Navios Maritime Partners | Navios Maritime vs. Euroseas |
| Eagle Bulk vs. Star Bulk Carriers | Eagle Bulk vs. Golden Ocean Group | Eagle Bulk vs. Global Ship Lease | Eagle Bulk vs. Diana Shipping |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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