Correlation Between NYSE Composite and Global Ship
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Global Ship 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 Global Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Global Ship Lease, you can compare the effects of market volatilities on NYSE Composite and Global Ship 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 Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Global Ship.
Diversification Opportunities for NYSE Composite and Global Ship
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NYSE and Global is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease 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 Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of NYSE Composite i.e., NYSE Composite and Global Ship go up and down completely randomly.
Pair Corralation between NYSE Composite and Global Ship
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.29 times less return on investment than Global Ship. But when comparing it to its historical volatility, NYSE Composite is 2.42 times less risky than Global Ship. It trades about 0.08 of its potential returns per unit of risk. Global Ship Lease is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,701 in Global Ship Lease on November 19, 2024 and sell it today you would earn a total of 561.00 from holding Global Ship Lease or generate 32.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
NYSE Composite vs. Global Ship Lease
Performance |
| Timeline |
NYSE Composite and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Global Ship Lease
Pair trading matchups for Global Ship
Pair Trading with NYSE Composite and Global Ship
The main advantage of trading using opposite NYSE Composite and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship's long position.| NYSE Composite vs. Regeneron Pharmaceuticals | NYSE Composite vs. Compania Cervecerias Unidas | NYSE Composite vs. Ambev SA ADR | NYSE Composite vs. Monster Beverage Corp |
| Global Ship vs. Costamare | Global Ship vs. Navios Maritime Partners | Global Ship vs. Genco Shipping Trading | Global Ship vs. Star Bulk Carriers |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |