Correlation Between Safe Bulkers and Pyxis Tankers
Can any of the company-specific risk be diversified away by investing in both Safe Bulkers and Pyxis Tankers 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 Pyxis Tankers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safe Bulkers and Pyxis Tankers, you can compare the effects of market volatilities on Safe Bulkers and Pyxis Tankers 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 Pyxis Tankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safe Bulkers and Pyxis Tankers.
Diversification Opportunities for Safe Bulkers and Pyxis Tankers
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Safe and Pyxis is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Safe Bulkers and Pyxis Tankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyxis Tankers 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 Pyxis Tankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyxis Tankers has no effect on the direction of Safe Bulkers i.e., Safe Bulkers and Pyxis Tankers go up and down completely randomly.
Pair Corralation between Safe Bulkers and Pyxis Tankers
Allowing for the 90-day total investment horizon Safe Bulkers is expected to generate 1.1 times more return on investment than Pyxis Tankers. However, Safe Bulkers is 1.1 times more volatile than Pyxis Tankers. It trades about 0.1 of its potential returns per unit of risk. Pyxis Tankers is currently generating about -0.02 per unit of risk. If you would invest 345.00 in Safe Bulkers on November 9, 2024 and sell it today you would earn a total of 16.00 from holding Safe Bulkers or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safe Bulkers vs. Pyxis Tankers
Performance |
| Timeline |
| Safe Bulkers |
| Pyxis Tankers |
Safe Bulkers and Pyxis Tankers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safe Bulkers and Pyxis Tankers
The main advantage of trading using opposite Safe Bulkers and Pyxis Tankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safe Bulkers position performs unexpectedly, Pyxis Tankers 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 Pyxis Tankers will offset losses from the drop in Pyxis Tankers' long position.| Safe Bulkers vs. Global Ship Lease | Safe Bulkers vs. Costamare | Safe Bulkers vs. Navios Maritime Partners | Safe Bulkers vs. Genco Shipping Trading |
| Pyxis Tankers vs. EuroDry | Pyxis Tankers vs. Costamare | Pyxis Tankers vs. Global Ship Lease | Pyxis Tankers vs. Danaos |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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