Correlation Between Safe Bulkers and Safe Bulkers
Can any of the company-specific risk be diversified away by investing in both Safe Bulkers and Safe Bulkers 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 Safe Bulkers and Safe Bulkers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safe Bulkers and Safe Bulkers, you can compare the effects of market volatilities on Safe Bulkers and Safe Bulkers 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 Safe Bulkers with a short position of Safe Bulkers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safe Bulkers and Safe Bulkers.
Diversification Opportunities for Safe Bulkers and Safe Bulkers
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Safe and Safe is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Safe Bulkers and Safe Bulkers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe Bulkers and Safe Bulkers 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 Safe Bulkers are associated (or correlated) with Safe Bulkers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safe Bulkers has no effect on the direction of Safe Bulkers i.e., Safe Bulkers and Safe Bulkers go up and down completely randomly.
Pair Corralation between Safe Bulkers and Safe Bulkers
Assuming the 90 days horizon Safe Bulkers is expected to generate 4.13 times more return on investment than Safe Bulkers. However, Safe Bulkers is 4.13 times more volatile than Safe Bulkers. It trades about 0.03 of its potential returns per unit of risk. Safe Bulkers is currently generating about 0.07 per unit of risk. If you would invest 2,114 in Safe Bulkers on November 2, 2024 and sell it today you would earn a total of 427.00 from holding Safe Bulkers or generate 20.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.03% |
| Values | Daily Returns |
Safe Bulkers vs. Safe Bulkers
Performance |
| Timeline |
| Safe Bulkers |
| Safe Bulkers |
Safe Bulkers and Safe Bulkers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safe Bulkers and Safe Bulkers
The main advantage of trading using opposite Safe Bulkers and Safe Bulkers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safe Bulkers position performs unexpectedly, Safe Bulkers 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 Safe Bulkers will offset losses from the drop in Safe Bulkers' long position.| Safe Bulkers vs. Safe Bulkers | Safe Bulkers vs. Global Ship Lease | Safe Bulkers vs. Diana Shipping | Safe Bulkers vs. Costamare |
| Safe Bulkers vs. Safe Bulkers | Safe Bulkers vs. Global Ship Lease | Safe Bulkers vs. Diana Shipping | Safe Bulkers vs. Costamare |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |