Correlation Between Safe Bulkers and Castor Maritime
Can any of the company-specific risk be diversified away by investing in both Safe Bulkers and Castor 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 Safe Bulkers and Castor Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safe Bulkers and Castor Maritime, you can compare the effects of market volatilities on Safe Bulkers and Castor 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 Safe Bulkers with a short position of Castor Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safe Bulkers and Castor Maritime.
Diversification Opportunities for Safe Bulkers and Castor Maritime
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Safe and Castor is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Safe Bulkers and Castor Maritime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Castor Maritime 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 Castor Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Castor Maritime has no effect on the direction of Safe Bulkers i.e., Safe Bulkers and Castor Maritime go up and down completely randomly.
Pair Corralation between Safe Bulkers and Castor Maritime
Allowing for the 90-day total investment horizon Safe Bulkers is expected to generate 0.5 times more return on investment than Castor Maritime. However, Safe Bulkers is 2.0 times less risky than Castor Maritime. It trades about 0.02 of its potential returns per unit of risk. Castor Maritime is currently generating about -0.04 per unit of risk. If you would invest 328.00 in Safe Bulkers on November 1, 2024 and sell it today you would earn a total of 33.00 from holding Safe Bulkers or generate 10.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safe Bulkers vs. Castor Maritime
Performance |
| Timeline |
| Safe Bulkers |
| Castor Maritime |
Safe Bulkers and Castor Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safe Bulkers and Castor Maritime
The main advantage of trading using opposite Safe Bulkers and Castor Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safe Bulkers position performs unexpectedly, Castor 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 Castor Maritime will offset losses from the drop in Castor Maritime'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 |
| Castor Maritime vs. Seanergy Maritime Holdings | Castor Maritime vs. TOP Ships | Castor Maritime vs. United Maritime | Castor Maritime vs. Nordic American Tankers |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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