Correlation Between Navios Maritime and Safe Bulkers
Can any of the company-specific risk be diversified away by investing in both Navios Maritime and Safe Bulkers 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 Safe Bulkers 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 Safe Bulkers, you can compare the effects of market volatilities on Navios Maritime and Safe Bulkers 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 Safe Bulkers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navios Maritime and Safe Bulkers.
Diversification Opportunities for Navios Maritime and Safe Bulkers
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Navios and Safe is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Navios Maritime Partners and Safe Bulkers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe Bulkers 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 Safe Bulkers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safe Bulkers has no effect on the direction of Navios Maritime i.e., Navios Maritime and Safe Bulkers go up and down completely randomly.
Pair Corralation between Navios Maritime and Safe Bulkers
Considering the 90-day investment horizon Navios Maritime is expected to generate 1.4 times less return on investment than Safe Bulkers. But when comparing it to its historical volatility, Navios Maritime Partners is 1.7 times less risky than Safe Bulkers. It trades about 0.14 of its potential returns per unit of risk. Safe Bulkers is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 342.00 in Safe Bulkers on November 18, 2024 and sell it today you would earn a total of 17.00 from holding Safe Bulkers or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Navios Maritime Partners vs. Safe Bulkers
Performance |
| Timeline |
| Navios Maritime Partners |
| Safe Bulkers |
Navios Maritime and Safe Bulkers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navios Maritime and Safe Bulkers
The main advantage of trading using opposite Navios Maritime and Safe Bulkers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navios Maritime position performs unexpectedly, Safe Bulkers 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 Safe Bulkers will offset losses from the drop in Safe Bulkers' long position.| Navios Maritime vs. Global Ship Lease | Navios Maritime vs. Costamare | Navios Maritime vs. Genco Shipping Trading | Navios Maritime vs. Danaos |
| Safe Bulkers vs. Global Ship Lease | Safe Bulkers vs. Costamare | Safe Bulkers vs. Navios Maritime Partners | Safe Bulkers vs. Genco Shipping Trading |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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