Correlation Between Turning Point and First Ship
Can any of the company-specific risk be diversified away by investing in both Turning Point and First Ship 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 Turning Point and First Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turning Point Brands and First Ship Lease, you can compare the effects of market volatilities on Turning Point and First Ship 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 Turning Point with a short position of First Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turning Point and First Ship.
Diversification Opportunities for Turning Point and First Ship
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Turning and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Turning Point Brands and First Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Ship Lease and Turning Point 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 Turning Point Brands are associated (or correlated) with First Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Ship Lease has no effect on the direction of Turning Point i.e., Turning Point and First Ship go up and down completely randomly.
Pair Corralation between Turning Point and First Ship
If you would invest 4,663 in Turning Point Brands on August 31, 2024 and sell it today you would earn a total of 1,478 from holding Turning Point Brands or generate 31.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turning Point Brands vs. First Ship Lease
Performance |
| Timeline |
| Turning Point Brands |
| First Ship Lease |
Turning Point and First Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turning Point and First Ship
The main advantage of trading using opposite Turning Point and First Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turning Point position performs unexpectedly, First Ship 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 First Ship will offset losses from the drop in First Ship's long position.| Turning Point vs. Universal | Turning Point vs. Imperial Brands PLC | Turning Point vs. British American Tobacco | Turning Point vs. Philip Morris International |
| First Ship vs. United Rentals | First Ship vs. Ashtead Gro | First Ship vs. Ashtead Group plc | First Ship vs. AerCap Holdings NV |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |