Correlation Between Pyxis Tankers and United Maritime
Can any of the company-specific risk be diversified away by investing in both Pyxis Tankers and United Maritime 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 United Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pyxis Tankers and United Maritime, you can compare the effects of market volatilities on Pyxis Tankers and United Maritime 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 United Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pyxis Tankers and United Maritime.
Diversification Opportunities for Pyxis Tankers and United Maritime
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pyxis and United is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Pyxis Tankers and United Maritime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Maritime 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 United Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Maritime has no effect on the direction of Pyxis Tankers i.e., Pyxis Tankers and United Maritime go up and down completely randomly.
Pair Corralation between Pyxis Tankers and United Maritime
Considering the 90-day investment horizon Pyxis Tankers is expected to under-perform the United Maritime. In addition to that, Pyxis Tankers is 1.32 times more volatile than United Maritime. It trades about -0.02 of its total potential returns per unit of risk. United Maritime is currently generating about 0.33 per unit of volatility. If you would invest 167.00 in United Maritime on November 9, 2024 and sell it today you would earn a total of 19.00 from holding United Maritime or generate 11.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pyxis Tankers vs. United Maritime
Performance |
| Timeline |
| Pyxis Tankers |
| United Maritime |
Pyxis Tankers and United Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pyxis Tankers and United Maritime
The main advantage of trading using opposite Pyxis Tankers and United Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pyxis Tankers position performs unexpectedly, United Maritime 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 United Maritime will offset losses from the drop in United Maritime's long position.| Pyxis Tankers vs. EuroDry | Pyxis Tankers vs. Costamare | Pyxis Tankers vs. Global Ship Lease | Pyxis Tankers vs. Danaos |
| United Maritime vs. TOP Ships | United Maritime vs. Globus Maritime | United Maritime vs. Castor Maritime | United Maritime 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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