Correlation Between Safe Bulkers and Cass Information
Can any of the company-specific risk be diversified away by investing in both Safe Bulkers and Cass Information 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 Cass Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safe Bulkers and Cass Information Systems, you can compare the effects of market volatilities on Safe Bulkers and Cass Information 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 Cass Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safe Bulkers and Cass Information.
Diversification Opportunities for Safe Bulkers and Cass Information
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Safe and Cass is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Safe Bulkers and Cass Information Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cass Information Systems 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 Cass Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cass Information Systems has no effect on the direction of Safe Bulkers i.e., Safe Bulkers and Cass Information go up and down completely randomly.
Pair Corralation between Safe Bulkers and Cass Information
Allowing for the 90-day total investment horizon Safe Bulkers is expected to under-perform the Cass Information. But the stock apears to be less risky and, when comparing its historical volatility, Safe Bulkers is 1.02 times less risky than Cass Information. The stock trades about -0.01 of its potential returns per unit of risk. The Cass Information Systems is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 4,734 in Cass Information Systems on August 27, 2024 and sell it today you would lose (238.00) from holding Cass Information Systems or give up 5.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safe Bulkers vs. Cass Information Systems
Performance |
| Timeline |
| Safe Bulkers |
| Cass Information Systems |
Safe Bulkers and Cass Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safe Bulkers and Cass Information
The main advantage of trading using opposite Safe Bulkers and Cass Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safe Bulkers position performs unexpectedly, Cass Information 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 Cass Information will offset losses from the drop in Cass Information's long position.| Safe Bulkers vs. Global Ship Lease | Safe Bulkers vs. Costamare | Safe Bulkers vs. Navios Maritime Partners | Safe Bulkers vs. Genco Shipping Trading |
| Cass Information vs. First Advantage Corp | Cass Information vs. Rentokil Initial PLC | Cass Information vs. CBIZ Inc | Cass Information vs. Civeo Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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