Correlation Between Safe Bulkers and C3is
Can any of the company-specific risk be diversified away by investing in both Safe Bulkers and C3is 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 C3is into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safe Bulkers and C3is Inc, you can compare the effects of market volatilities on Safe Bulkers and C3is 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 C3is. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safe Bulkers and C3is.
Diversification Opportunities for Safe Bulkers and C3is
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Safe and C3is is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Safe Bulkers and C3is Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C3is Inc 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 C3is. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C3is Inc has no effect on the direction of Safe Bulkers i.e., Safe Bulkers and C3is go up and down completely randomly.
Pair Corralation between Safe Bulkers and C3is
Allowing for the 90-day total investment horizon Safe Bulkers is expected to under-perform the C3is. But the stock apears to be less risky and, when comparing its historical volatility, Safe Bulkers is 4.16 times less risky than C3is. The stock trades about -0.24 of its potential returns per unit of risk. The C3is Inc is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 150.00 in C3is Inc on October 25, 2024 and sell it today you would lose (15.00) from holding C3is Inc or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safe Bulkers vs. C3is Inc
Performance |
| Timeline |
| Safe Bulkers |
| C3is Inc |
Safe Bulkers and C3is Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safe Bulkers and C3is
The main advantage of trading using opposite Safe Bulkers and C3is positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safe Bulkers position performs unexpectedly, C3is 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 C3is will offset losses from the drop in C3is' long position.| Safe Bulkers vs. Global Ship Lease | Safe Bulkers vs. Costamare | Safe Bulkers vs. Navios Maritime Partners | Safe Bulkers vs. Genco Shipping Trading |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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