Correlation Between Star Bulk and Navios Maritime
Can any of the company-specific risk be diversified away by investing in both Star Bulk and Navios 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 Star Bulk and Navios Maritime 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 Navios Maritime Holdings, you can compare the effects of market volatilities on Star Bulk and Navios 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 Star Bulk with a short position of Navios Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Bulk and Navios Maritime.
Diversification Opportunities for Star Bulk and Navios Maritime
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Star and Navios is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Star Bulk Carriers and Navios Maritime Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navios Maritime Holdings 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 Navios Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navios Maritime Holdings has no effect on the direction of Star Bulk i.e., Star Bulk and Navios Maritime go up and down completely randomly.
Pair Corralation between Star Bulk and Navios Maritime
Given the investment horizon of 90 days Star Bulk Carriers is expected to generate 0.55 times more return on investment than Navios Maritime. However, Star Bulk Carriers is 1.83 times less risky than Navios Maritime. It trades about 0.01 of its potential returns per unit of risk. Navios Maritime Holdings is currently generating about 0.0 per unit of risk. If you would invest 1,816 in Star Bulk Carriers on August 24, 2024 and sell it today you would earn a total of 47.00 from holding Star Bulk Carriers or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 18.8% |
| Values | Daily Returns |
Star Bulk Carriers vs. Navios Maritime Holdings
Performance |
| Timeline |
| Star Bulk Carriers |
| Navios Maritime Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Star Bulk and Navios Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Bulk and Navios Maritime
The main advantage of trading using opposite Star Bulk and Navios Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Bulk position performs unexpectedly, Navios 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 Navios Maritime will offset losses from the drop in Navios Maritime's long position.| Star Bulk vs. Genco Shipping Trading | Star Bulk vs. Diana Shipping | Star Bulk vs. Danaos | Star Bulk vs. Golden Ocean Group |
| Navios Maritime vs. Diana Shipping | Navios Maritime vs. Genco Shipping Trading | Navios Maritime vs. Navios Maritime Partners | Navios Maritime vs. Euroseas |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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