Correlation Between Teekay and Pyxis Tankers
Can any of the company-specific risk be diversified away by investing in both Teekay 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 Teekay and Pyxis Tankers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teekay and Pyxis Tankers, you can compare the effects of market volatilities on Teekay 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 Teekay with a short position of Pyxis Tankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teekay and Pyxis Tankers.
Diversification Opportunities for Teekay and Pyxis Tankers
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Teekay and Pyxis is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Teekay and Pyxis Tankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyxis Tankers and Teekay 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 Teekay 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 Teekay i.e., Teekay and Pyxis Tankers go up and down completely randomly.
Pair Corralation between Teekay and Pyxis Tankers
Allowing for the 90-day total investment horizon Teekay is expected to generate 1.63 times more return on investment than Pyxis Tankers. However, Teekay is 1.63 times more volatile than Pyxis Tankers. It trades about 0.04 of its potential returns per unit of risk. Pyxis Tankers is currently generating about -0.27 per unit of risk. If you would invest 763.00 in Teekay on August 28, 2024 and sell it today you would earn a total of 13.00 from holding Teekay or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teekay vs. Pyxis Tankers
Performance |
| Timeline |
| Teekay |
| Pyxis Tankers |
Teekay and Pyxis Tankers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teekay and Pyxis Tankers
The main advantage of trading using opposite Teekay and Pyxis Tankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teekay 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.| Teekay vs. Teekay Tankers | Teekay vs. DHT Holdings | Teekay vs. Frontline | Teekay vs. International Seaways |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |