Correlation Between Star Bulk and Capital Clean
Can any of the company-specific risk be diversified away by investing in both Star Bulk and Capital Clean 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 Star Bulk and Capital Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Bulk Carriers and Capital Clean Energy, you can compare the effects of market volatilities on Star Bulk and Capital Clean 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 Star Bulk with a short position of Capital Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Bulk and Capital Clean.
Diversification Opportunities for Star Bulk and Capital Clean
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Star and Capital is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Star Bulk Carriers and Capital Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Clean Energy and Star Bulk 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 Star Bulk Carriers are associated (or correlated) with Capital Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Clean Energy has no effect on the direction of Star Bulk i.e., Star Bulk and Capital Clean go up and down completely randomly.
Pair Corralation between Star Bulk and Capital Clean
Given the investment horizon of 90 days Star Bulk is expected to generate 2.82 times less return on investment than Capital Clean. In addition to that, Star Bulk is 1.12 times more volatile than Capital Clean Energy. It trades about 0.02 of its total potential returns per unit of risk. Capital Clean Energy is currently generating about 0.05 per unit of volatility. If you would invest 1,289 in Capital Clean Energy on August 30, 2024 and sell it today you would earn a total of 545.00 from holding Capital Clean Energy or generate 42.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Star Bulk Carriers vs. Capital Clean Energy
Performance |
| Timeline |
| Star Bulk Carriers |
| Capital Clean Energy |
Star Bulk and Capital Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Bulk and Capital Clean
The main advantage of trading using opposite Star Bulk and Capital Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Bulk position performs unexpectedly, Capital Clean 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 Capital Clean will offset losses from the drop in Capital Clean's long position.| Star Bulk vs. Genco Shipping Trading | Star Bulk vs. Diana Shipping | Star Bulk vs. Danaos | Star Bulk vs. Golden Ocean Group |
| Capital Clean vs. RadNet Inc | Capital Clean vs. MACOM Technology Solutions | Capital Clean vs. Elmos Semiconductor SE | Capital Clean vs. Lipocine |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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