Correlation Between Navios Maritime and Global Ship
Can any of the company-specific risk be diversified away by investing in both Navios Maritime and Global Ship 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 Global Ship 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 Global Ship Lease, you can compare the effects of market volatilities on Navios Maritime and Global Ship 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 Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navios Maritime and Global Ship.
Diversification Opportunities for Navios Maritime and Global Ship
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Navios and Global is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Navios Maritime Holdings and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease 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 Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of Navios Maritime i.e., Navios Maritime and Global Ship go up and down completely randomly.
Pair Corralation between Navios Maritime and Global Ship
Allowing for the 90-day total investment horizon Navios Maritime Holdings is expected to under-perform the Global Ship. In addition to that, Navios Maritime is 1.98 times more volatile than Global Ship Lease. It trades about 0.0 of its total potential returns per unit of risk. Global Ship Lease is currently generating about 0.05 per unit of volatility. If you would invest 1,651 in Global Ship Lease on August 24, 2024 and sell it today you would earn a total of 575.00 from holding Global Ship Lease or generate 34.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 18.8% |
| Values | Daily Returns |
Navios Maritime Holdings vs. Global Ship Lease
Performance |
| Timeline |
| Navios Maritime Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Global Ship Lease |
Navios Maritime and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navios Maritime and Global Ship
The main advantage of trading using opposite Navios Maritime and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navios Maritime position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship's long position.| Navios Maritime vs. Diana Shipping | Navios Maritime vs. Genco Shipping Trading | Navios Maritime vs. Navios Maritime Partners | Navios Maritime vs. Euroseas |
| Global Ship vs. Costamare | Global Ship vs. Navios Maritime Partners | Global Ship vs. Genco Shipping Trading | Global Ship vs. Star Bulk Carriers |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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