Correlation Between Navios Maritime and Golden Ocean
Can any of the company-specific risk be diversified away by investing in both Navios Maritime and Golden Ocean 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 Golden Ocean 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 Golden Ocean Group, you can compare the effects of market volatilities on Navios Maritime and Golden Ocean 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 Golden Ocean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navios Maritime and Golden Ocean.
Diversification Opportunities for Navios Maritime and Golden Ocean
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Navios and Golden is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Navios Maritime Partners and Golden Ocean Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Ocean Group 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 Golden Ocean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Ocean Group has no effect on the direction of Navios Maritime i.e., Navios Maritime and Golden Ocean go up and down completely randomly.
Pair Corralation between Navios Maritime and Golden Ocean
Considering the 90-day investment horizon Navios Maritime Partners is expected to under-perform the Golden Ocean. In addition to that, Navios Maritime is 1.0 times more volatile than Golden Ocean Group. It trades about -0.22 of its total potential returns per unit of risk. Golden Ocean Group is currently generating about -0.17 per unit of volatility. If you would invest 1,298 in Golden Ocean Group on August 26, 2024 and sell it today you would lose (184.00) from holding Golden Ocean Group or give up 14.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Navios Maritime Partners vs. Golden Ocean Group
Performance |
| Timeline |
| Navios Maritime Partners |
| Golden Ocean Group |
Navios Maritime and Golden Ocean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navios Maritime and Golden Ocean
The main advantage of trading using opposite Navios Maritime and Golden Ocean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navios Maritime position performs unexpectedly, Golden Ocean 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 Golden Ocean will offset losses from the drop in Golden Ocean's long position.| Navios Maritime vs. Global Ship Lease | Navios Maritime vs. Costamare | Navios Maritime vs. Genco Shipping Trading | Navios Maritime vs. Danaos |
| Golden Ocean vs. Star Bulk Carriers | Golden Ocean vs. TOP Ships | Golden Ocean vs. Seanergy Maritime Holdings | Golden Ocean vs. Performance 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 Stocks Directory module to find actively traded stocks across global markets.
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