Correlation Between Pyxis Tankers and Performance Shipping
Can any of the company-specific risk be diversified away by investing in both Pyxis Tankers and Performance Shipping 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 Pyxis Tankers and Performance Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pyxis Tankers and Performance Shipping, you can compare the effects of market volatilities on Pyxis Tankers and Performance Shipping 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 Pyxis Tankers with a short position of Performance Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pyxis Tankers and Performance Shipping.
Diversification Opportunities for Pyxis Tankers and Performance Shipping
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pyxis and Performance is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Pyxis Tankers and Performance Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Shipping and Pyxis Tankers 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 Pyxis Tankers are associated (or correlated) with Performance Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Shipping has no effect on the direction of Pyxis Tankers i.e., Pyxis Tankers and Performance Shipping go up and down completely randomly.
Pair Corralation between Pyxis Tankers and Performance Shipping
Considering the 90-day investment horizon Pyxis Tankers is expected to generate 0.76 times more return on investment than Performance Shipping. However, Pyxis Tankers is 1.32 times less risky than Performance Shipping. It trades about -0.02 of its potential returns per unit of risk. Performance Shipping is currently generating about -0.19 per unit of risk. If you would invest 390.00 in Pyxis Tankers on November 9, 2024 and sell it today you would lose (5.00) from holding Pyxis Tankers or give up 1.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pyxis Tankers vs. Performance Shipping
Performance |
| Timeline |
| Pyxis Tankers |
| Performance Shipping |
Pyxis Tankers and Performance Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pyxis Tankers and Performance Shipping
The main advantage of trading using opposite Pyxis Tankers and Performance Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pyxis Tankers position performs unexpectedly, Performance Shipping 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 Performance Shipping will offset losses from the drop in Performance Shipping's long position.| Pyxis Tankers vs. EuroDry | Pyxis Tankers vs. Costamare | Pyxis Tankers vs. Global Ship Lease | Pyxis Tankers vs. Danaos |
| Performance Shipping vs. Genco Shipping Trading | Performance Shipping vs. Golden Ocean Group | Performance Shipping vs. Star Bulk Carriers | Performance Shipping vs. Oceanpal |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |