Correlation Between Pyxis Tankers and American Shipping
Can any of the company-specific risk be diversified away by investing in both Pyxis Tankers and American 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 American 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 American Shipping, you can compare the effects of market volatilities on Pyxis Tankers and American 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 American Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pyxis Tankers and American Shipping.
Diversification Opportunities for Pyxis Tankers and American Shipping
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pyxis and American is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Pyxis Tankers and American Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American 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 American Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Shipping has no effect on the direction of Pyxis Tankers i.e., Pyxis Tankers and American Shipping go up and down completely randomly.
Pair Corralation between Pyxis Tankers and American Shipping
If you would invest 236.00 in American Shipping on September 13, 2024 and sell it today you would earn a total of 12.00 from holding American Shipping or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Pyxis Tankers vs. American Shipping
Performance |
| Timeline |
| Pyxis Tankers |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| American Shipping |
Pyxis Tankers and American Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pyxis Tankers and American Shipping
The main advantage of trading using opposite Pyxis Tankers and American Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pyxis Tankers position performs unexpectedly, American 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 American Shipping will offset losses from the drop in American Shipping's long position.| Pyxis Tankers vs. FAT Brands | Pyxis Tankers vs. Fortress Biotech Pref | Pyxis Tankers vs. Medalist Diversified Reit | Pyxis Tankers vs. Air T Inc |
| American Shipping vs. Western Bulk Chartering | American Shipping vs. AP Moeller | American Shipping vs. AP Mller | American Shipping vs. Pacific Basin Shipping |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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