Correlation Between Western Bulk and COSCO SHIPPING
Can any of the company-specific risk be diversified away by investing in both Western Bulk and COSCO SHIPPING 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 Western Bulk and COSCO SHIPPING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Bulk Chartering and COSCO SHIPPING Development, you can compare the effects of market volatilities on Western Bulk and COSCO SHIPPING 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 Western Bulk with a short position of COSCO SHIPPING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Bulk and COSCO SHIPPING.
Diversification Opportunities for Western Bulk and COSCO SHIPPING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and COSCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Western Bulk Chartering and COSCO SHIPPING Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSCO SHIPPING Devel and Western 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 Western Bulk Chartering are associated (or correlated) with COSCO SHIPPING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSCO SHIPPING Devel has no effect on the direction of Western Bulk i.e., Western Bulk and COSCO SHIPPING go up and down completely randomly.
Pair Corralation between Western Bulk and COSCO SHIPPING
If you would invest (100.00) in COSCO SHIPPING Development on November 9, 2024 and sell it today you would earn a total of 100.00 from holding COSCO SHIPPING Development 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 |
Western Bulk Chartering vs. COSCO SHIPPING Development
Performance |
| Timeline |
| Western Bulk Chartering |
| COSCO SHIPPING Devel |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Western Bulk and COSCO SHIPPING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Bulk and COSCO SHIPPING
The main advantage of trading using opposite Western Bulk and COSCO SHIPPING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Bulk position performs unexpectedly, COSCO SHIPPING 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 COSCO SHIPPING will offset losses from the drop in COSCO SHIPPING's long position.| Western Bulk vs. SITC International Holdings | Western Bulk vs. Pacific Basin Shipping | Western Bulk vs. SITC International Holdings | Western Bulk vs. Mitsui OSK Lines |
| COSCO SHIPPING vs. SITC International Holdings | COSCO SHIPPING vs. Orient Overseas Limited | COSCO SHIPPING vs. COSCO SHIPPING Holdings | COSCO SHIPPING vs. Pacific Basin Shipping |
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 CEOs Directory module to screen CEOs from public companies around the world.
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