Correlation Between Navios Maritime and Capital Product
Can any of the company-specific risk be diversified away by investing in both Navios Maritime and Capital Product 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 Capital Product into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Navios Maritime Partners and Capital Product Partners, you can compare the effects of market volatilities on Navios Maritime and Capital Product 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 Capital Product. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navios Maritime and Capital Product.
Diversification Opportunities for Navios Maritime and Capital Product
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Navios and Capital is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Navios Maritime Partners and Capital Product Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Product Partners 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 Partners are associated (or correlated) with Capital Product. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Product Partners has no effect on the direction of Navios Maritime i.e., Navios Maritime and Capital Product go up and down completely randomly.
Pair Corralation between Navios Maritime and Capital Product
If you would invest (100.00) in Capital Product Partners on August 23, 2024 and sell it today you would earn a total of 100.00 from holding Capital Product Partners or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Navios Maritime Partners vs. Capital Product Partners
Performance |
| Timeline |
| Navios Maritime Partners |
| Capital Product Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Navios Maritime and Capital Product Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navios Maritime and Capital Product
The main advantage of trading using opposite Navios Maritime and Capital Product positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navios Maritime position performs unexpectedly, Capital Product 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 Capital Product will offset losses from the drop in Capital Product's long position.| Navios Maritime vs. Global Ship Lease | Navios Maritime vs. Costamare | Navios Maritime vs. Genco Shipping Trading | Navios Maritime vs. Danaos |
| Capital Product vs. Danaos | Capital Product vs. Global Ship Lease | Capital Product vs. Euroseas | Capital Product vs. Navios Maritime Partners |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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