Correlation Between Placer Creek and Global Ship
Can any of the company-specific risk be diversified away by investing in both Placer Creek 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 Placer Creek and Global Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Placer Creek Mining and Global Ship Lease, you can compare the effects of market volatilities on Placer Creek 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 Placer Creek with a short position of Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Placer Creek and Global Ship.
Diversification Opportunities for Placer Creek and Global Ship
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Placer and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Placer Creek Mining 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 Placer Creek 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 Placer Creek Mining 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 Placer Creek i.e., Placer Creek and Global Ship go up and down completely randomly.
Pair Corralation between Placer Creek and Global Ship
If you would invest 0.01 in Placer Creek Mining on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Placer Creek Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Placer Creek Mining vs. Global Ship Lease
Performance |
| Timeline |
| Placer Creek Mining |
| Global Ship Lease |
Placer Creek and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Placer Creek and Global Ship
The main advantage of trading using opposite Placer Creek and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Placer Creek 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.| Placer Creek vs. First Ship Lease | Placer Creek vs. Air Lease | Placer Creek vs. Seadrill Limited | Placer Creek vs. AKITA Drilling |
| Global Ship vs. Safe Bulkers | Global Ship vs. Diana Shipping | Global Ship vs. Costamare | Global Ship vs. Safe Bulkers |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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