Correlation Between Oceanpal and Cadeler AS
Can any of the company-specific risk be diversified away by investing in both Oceanpal and Cadeler AS 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 Oceanpal and Cadeler AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oceanpal and Cadeler AS, you can compare the effects of market volatilities on Oceanpal and Cadeler AS 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 Oceanpal with a short position of Cadeler AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oceanpal and Cadeler AS.
Diversification Opportunities for Oceanpal and Cadeler AS
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oceanpal and Cadeler is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Oceanpal and Cadeler AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadeler AS and Oceanpal 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 Oceanpal are associated (or correlated) with Cadeler AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadeler AS has no effect on the direction of Oceanpal i.e., Oceanpal and Cadeler AS go up and down completely randomly.
Pair Corralation between Oceanpal and Cadeler AS
Allowing for the 90-day total investment horizon Oceanpal is expected to under-perform the Cadeler AS. In addition to that, Oceanpal is 1.14 times more volatile than Cadeler AS. It trades about -0.22 of its total potential returns per unit of risk. Cadeler AS is currently generating about -0.18 per unit of volatility. If you would invest 2,689 in Cadeler AS on September 1, 2024 and sell it today you would lose (246.00) from holding Cadeler AS or give up 9.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oceanpal vs. Cadeler AS
Performance |
| Timeline |
| Oceanpal |
| Cadeler AS |
Oceanpal and Cadeler AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oceanpal and Cadeler AS
The main advantage of trading using opposite Oceanpal and Cadeler AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oceanpal position performs unexpectedly, Cadeler AS 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 Cadeler AS will offset losses from the drop in Cadeler AS's long position.| Oceanpal vs. Genco Shipping Trading | Oceanpal vs. Golden Ocean Group | Oceanpal vs. Star Bulk Carriers | Oceanpal vs. TOP Ships |
| Cadeler AS vs. Aquestive Therapeutics | Cadeler AS vs. Alvotech | Cadeler AS vs. Xponential Fitness | Cadeler AS vs. HUTCHMED DRC |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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