Correlation Between NYSE Composite and Costamare
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Costamare 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 NYSE Composite and Costamare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Costamare, you can compare the effects of market volatilities on NYSE Composite and Costamare 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 NYSE Composite with a short position of Costamare. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Costamare.
Diversification Opportunities for NYSE Composite and Costamare
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NYSE and Costamare is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Costamare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Costamare and NYSE Composite 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 NYSE Composite are associated (or correlated) with Costamare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Costamare has no effect on the direction of NYSE Composite i.e., NYSE Composite and Costamare go up and down completely randomly.
Pair Corralation between NYSE Composite and Costamare
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.34 times more return on investment than Costamare. However, NYSE Composite is 2.95 times less risky than Costamare. It trades about 0.26 of its potential returns per unit of risk. Costamare is currently generating about -0.01 per unit of risk. If you would invest 1,945,669 in NYSE Composite on August 30, 2024 and sell it today you would earn a total of 75,313 from holding NYSE Composite or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Costamare
Performance |
| Timeline |
NYSE Composite and Costamare Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Costamare
Pair trading matchups for Costamare
Pair Trading with NYSE Composite and Costamare
The main advantage of trading using opposite NYSE Composite and Costamare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Costamare 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 Costamare will offset losses from the drop in Costamare's long position.| NYSE Composite vs. Delek Drilling | NYSE Composite vs. Helmerich and Payne | NYSE Composite vs. Waste Management | NYSE Composite vs. US Global Investors |
| Costamare vs. Global Ship Lease | Costamare vs. Navios Maritime Partners | Costamare vs. Genco Shipping Trading | Costamare 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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