Correlation Between Navios Maritime and Grindrod Shipping
Can any of the company-specific risk be diversified away by investing in both Navios Maritime and Grindrod Shipping 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 Grindrod Shipping 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 Grindrod Shipping Holdings, you can compare the effects of market volatilities on Navios Maritime and Grindrod Shipping 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 Grindrod Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navios Maritime and Grindrod Shipping.
Diversification Opportunities for Navios Maritime and Grindrod Shipping
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Navios and Grindrod is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Navios Maritime Partners and Grindrod Shipping Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grindrod 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 Partners are associated (or correlated) with Grindrod Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grindrod Shipping has no effect on the direction of Navios Maritime i.e., Navios Maritime and Grindrod Shipping go up and down completely randomly.
Pair Corralation between Navios Maritime and Grindrod Shipping
If you would invest (100.00) in Grindrod Shipping Holdings on August 24, 2024 and sell it today you would earn a total of 100.00 from holding Grindrod Shipping Holdings 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. Grindrod Shipping Holdings
Performance |
| Timeline |
| Navios Maritime Partners |
| Grindrod Shipping |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Navios Maritime and Grindrod Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navios Maritime and Grindrod Shipping
The main advantage of trading using opposite Navios Maritime and Grindrod Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navios Maritime position performs unexpectedly, Grindrod Shipping 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 Grindrod Shipping will offset losses from the drop in Grindrod Shipping's long position.| Navios Maritime vs. Global Ship Lease | Navios Maritime vs. Costamare | Navios Maritime vs. Genco Shipping Trading | Navios Maritime vs. Danaos |
| Grindrod Shipping vs. Star Bulk Carriers | Grindrod Shipping vs. Golden Ocean Group | Grindrod Shipping vs. Global Ship Lease | Grindrod Shipping 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |