Correlation Between TNP Old and Navigator Holdings
Can any of the company-specific risk be diversified away by investing in both TNP Old and Navigator Holdings 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 TNP Old and Navigator Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TNP Old and Navigator Holdings, you can compare the effects of market volatilities on TNP Old and Navigator Holdings 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 TNP Old with a short position of Navigator Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of TNP Old and Navigator Holdings.
Diversification Opportunities for TNP Old and Navigator Holdings
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TNP and Navigator is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding TNP Old and Navigator Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navigator Holdings and TNP Old 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 TNP Old are associated (or correlated) with Navigator Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navigator Holdings has no effect on the direction of TNP Old i.e., TNP Old and Navigator Holdings go up and down completely randomly.
Pair Corralation between TNP Old and Navigator Holdings
If you would invest 1,594 in Navigator Holdings on November 2, 2024 and sell it today you would earn a total of 111.00 from holding Navigator Holdings or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.97% |
| Values | Daily Returns |
TNP Old vs. Navigator Holdings
Performance |
| Timeline |
| TNP Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Navigator Holdings |
TNP Old and Navigator Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TNP Old and Navigator Holdings
The main advantage of trading using opposite TNP Old and Navigator Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TNP Old position performs unexpectedly, Navigator Holdings 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 Navigator Holdings will offset losses from the drop in Navigator Holdings' long position.The idea behind TNP Old and Navigator Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Navigator Holdings vs. Scorpio Tankers | Navigator Holdings vs. Teekay Tankers | Navigator Holdings vs. International Seaways | Navigator Holdings vs. Frontline |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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