Correlation Between Pangaea Logistic and Global Ship
Can any of the company-specific risk be diversified away by investing in both Pangaea Logistic 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 Pangaea Logistic and Global Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pangaea Logistic and Global Ship Lease, you can compare the effects of market volatilities on Pangaea Logistic 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 Pangaea Logistic with a short position of Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pangaea Logistic and Global Ship.
Diversification Opportunities for Pangaea Logistic and Global Ship
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pangaea and Global is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Pangaea Logistic 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 Pangaea Logistic 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 Pangaea Logistic 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 Pangaea Logistic i.e., Pangaea Logistic and Global Ship go up and down completely randomly.
Pair Corralation between Pangaea Logistic and Global Ship
Given the investment horizon of 90 days Pangaea Logistic is expected to under-perform the Global Ship. In addition to that, Pangaea Logistic is 1.21 times more volatile than Global Ship Lease. It trades about -0.13 of its total potential returns per unit of risk. Global Ship Lease is currently generating about -0.14 per unit of volatility. If you would invest 2,326 in Global Ship Lease on August 28, 2024 and sell it today you would lose (143.00) from holding Global Ship Lease or give up 6.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pangaea Logistic vs. Global Ship Lease
Performance |
| Timeline |
| Pangaea Logistic |
| Global Ship Lease |
Pangaea Logistic and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pangaea Logistic and Global Ship
The main advantage of trading using opposite Pangaea Logistic and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pangaea Logistic 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.| Pangaea Logistic vs. EuroDry | Pangaea Logistic vs. Costamare | Pangaea Logistic vs. Global Ship Lease | Pangaea Logistic vs. Danaos |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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