Correlation Between Navios Maritime and Pyxis Tankers
Can any of the company-specific risk be diversified away by investing in both Navios Maritime and Pyxis Tankers 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 Pyxis Tankers 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 Pyxis Tankers, you can compare the effects of market volatilities on Navios Maritime and Pyxis Tankers 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 Pyxis Tankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navios Maritime and Pyxis Tankers.
Diversification Opportunities for Navios Maritime and Pyxis Tankers
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Navios and Pyxis is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Navios Maritime Partners and Pyxis Tankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyxis Tankers 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 Pyxis Tankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyxis Tankers has no effect on the direction of Navios Maritime i.e., Navios Maritime and Pyxis Tankers go up and down completely randomly.
Pair Corralation between Navios Maritime and Pyxis Tankers
Considering the 90-day investment horizon Navios Maritime Partners is expected to generate 1.41 times more return on investment than Pyxis Tankers. However, Navios Maritime is 1.41 times more volatile than Pyxis Tankers. It trades about -0.02 of its potential returns per unit of risk. Pyxis Tankers is currently generating about -0.21 per unit of risk. If you would invest 5,183 in Navios Maritime Partners on August 28, 2024 and sell it today you would lose (251.00) from holding Navios Maritime Partners or give up 4.84% 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. Pyxis Tankers
Performance |
| Timeline |
| Navios Maritime Partners |
| Pyxis Tankers |
Navios Maritime and Pyxis Tankers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navios Maritime and Pyxis Tankers
The main advantage of trading using opposite Navios Maritime and Pyxis Tankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navios Maritime position performs unexpectedly, Pyxis Tankers 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 Pyxis Tankers will offset losses from the drop in Pyxis Tankers' long position.| Navios Maritime vs. Global Ship Lease | Navios Maritime vs. Costamare | Navios Maritime vs. Genco Shipping Trading | Navios Maritime vs. Danaos |
| Pyxis Tankers vs. EuroDry | Pyxis Tankers vs. Costamare | Pyxis Tankers vs. Global Ship Lease | Pyxis Tankers vs. Danaos |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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