Correlation Between Oceanpal and CSX
Can any of the company-specific risk be diversified away by investing in both Oceanpal and CSX 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 CSX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oceanpal and CSX Corporation, you can compare the effects of market volatilities on Oceanpal and CSX 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 CSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oceanpal and CSX.
Diversification Opportunities for Oceanpal and CSX
Very good diversification
The 3 months correlation between Oceanpal and CSX is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Oceanpal and CSX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSX Corporation 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 CSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSX Corporation has no effect on the direction of Oceanpal i.e., Oceanpal and CSX go up and down completely randomly.
Pair Corralation between Oceanpal and CSX
Allowing for the 90-day total investment horizon Oceanpal is expected to under-perform the CSX. In addition to that, Oceanpal is 5.08 times more volatile than CSX Corporation. It trades about -0.11 of its total potential returns per unit of risk. CSX Corporation is currently generating about 0.03 per unit of volatility. If you would invest 3,041 in CSX Corporation on August 27, 2024 and sell it today you would earn a total of 537.00 from holding CSX Corporation or generate 17.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oceanpal vs. CSX Corp.
Performance |
| Timeline |
| Oceanpal |
| CSX Corporation |
Oceanpal and CSX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oceanpal and CSX
The main advantage of trading using opposite Oceanpal and CSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oceanpal position performs unexpectedly, CSX 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 CSX will offset losses from the drop in CSX's long position.| Oceanpal vs. Star Bulk Carriers | Oceanpal vs. TOP Ships | Oceanpal vs. Seanergy Maritime Holdings | Oceanpal vs. Performance Shipping |
| CSX vs. Union Pacific | CSX vs. Norfolk Southern | CSX vs. Westinghouse Air Brake | CSX vs. Trinity Industries |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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