Correlation Between Safe Bulkers and Performance Shipping
Can any of the company-specific risk be diversified away by investing in both Safe Bulkers and Performance 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 Safe Bulkers and Performance Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safe Bulkers and Performance Shipping, you can compare the effects of market volatilities on Safe Bulkers and Performance 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 Safe Bulkers with a short position of Performance Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safe Bulkers and Performance Shipping.
Diversification Opportunities for Safe Bulkers and Performance Shipping
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Safe and Performance is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Safe Bulkers and Performance Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Shipping 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 Performance Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Shipping has no effect on the direction of Safe Bulkers i.e., Safe Bulkers and Performance Shipping go up and down completely randomly.
Pair Corralation between Safe Bulkers and Performance Shipping
Allowing for the 90-day total investment horizon Safe Bulkers is expected to generate 0.43 times more return on investment than Performance Shipping. However, Safe Bulkers is 2.32 times less risky than Performance Shipping. It trades about 0.03 of its potential returns per unit of risk. Performance Shipping is currently generating about 0.01 per unit of risk. If you would invest 295.00 in Safe Bulkers on November 9, 2024 and sell it today you would earn a total of 66.00 from holding Safe Bulkers or generate 22.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safe Bulkers vs. Performance Shipping
Performance |
| Timeline |
| Safe Bulkers |
| Performance Shipping |
Safe Bulkers and Performance Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safe Bulkers and Performance Shipping
The main advantage of trading using opposite Safe Bulkers and Performance Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safe Bulkers position performs unexpectedly, Performance 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 Performance Shipping will offset losses from the drop in Performance Shipping'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 |
| Performance Shipping vs. Genco Shipping Trading | Performance Shipping vs. Golden Ocean Group | Performance Shipping vs. Star Bulk Carriers | Performance Shipping vs. Oceanpal |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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