Correlation Between PAMT P and Safe Bulkers
Can any of the company-specific risk be diversified away by investing in both PAMT P 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 PAMT P and Safe Bulkers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PAMT P and Safe Bulkers, you can compare the effects of market volatilities on PAMT P 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 PAMT P with a short position of Safe Bulkers. Check out your portfolio center. Please also check ongoing floating volatility patterns of PAMT P and Safe Bulkers.
Diversification Opportunities for PAMT P and Safe Bulkers
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between PAMT and Safe is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding PAMT P and Safe Bulkers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe Bulkers and PAMT P 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 PAMT P 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 PAMT P i.e., PAMT P and Safe Bulkers go up and down completely randomly.
Pair Corralation between PAMT P and Safe Bulkers
Given the investment horizon of 90 days PAMT P is expected to generate 6.93 times more return on investment than Safe Bulkers. However, PAMT P is 6.93 times more volatile than Safe Bulkers. It trades about 0.01 of its potential returns per unit of risk. Safe Bulkers is currently generating about 0.08 per unit of risk. If you would invest 2,000 in PAMT P on September 2, 2024 and sell it today you would lose (103.00) from holding PAMT P or give up 5.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.53% |
| Values | Daily Returns |
PAMT P vs. Safe Bulkers
Performance |
| Timeline |
| PAMT P |
| Safe Bulkers |
PAMT P and Safe Bulkers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PAMT P and Safe Bulkers
The main advantage of trading using opposite PAMT P and Safe Bulkers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PAMT P 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.| PAMT P vs. Universal Logistics Holdings | PAMT P vs. Schneider National | PAMT P vs. Marten Transport | PAMT P vs. Covenant Logistics Group, |
| Safe Bulkers vs. Safe Bulkers | Safe Bulkers vs. Global Ship Lease | Safe Bulkers vs. Diana Shipping | Safe Bulkers vs. Costamare |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |