Correlation Between Star Bulk and CPLP Old
Can any of the company-specific risk be diversified away by investing in both Star Bulk and CPLP Old 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 CPLP Old 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 CPLP Old, you can compare the effects of market volatilities on Star Bulk and CPLP Old 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 CPLP Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Bulk and CPLP Old.
Diversification Opportunities for Star Bulk and CPLP Old
Pay attention - limited upside
The 3 months correlation between Star and CPLP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Star Bulk Carriers and CPLP Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPLP Old 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 CPLP Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPLP Old has no effect on the direction of Star Bulk i.e., Star Bulk and CPLP Old go up and down completely randomly.
Pair Corralation between Star Bulk and CPLP Old
If you would invest (100.00) in CPLP Old on November 18, 2024 and sell it today you would earn a total of 100.00 from holding CPLP Old or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Star Bulk Carriers vs. CPLP Old
Performance |
| Timeline |
| Star Bulk Carriers |
| CPLP Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Star Bulk and CPLP Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Bulk and CPLP Old
The main advantage of trading using opposite Star Bulk and CPLP Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Bulk position performs unexpectedly, CPLP Old 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 CPLP Old will offset losses from the drop in CPLP Old's long position.| Star Bulk vs. Genco Shipping Trading | Star Bulk vs. Diana Shipping | Star Bulk vs. Danaos | Star Bulk vs. Golden Ocean Group |
| CPLP Old vs. Danaos | CPLP Old vs. Global Ship Lease | CPLP Old vs. Euroseas | CPLP Old vs. Navios Maritime Partners |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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