Correlation Between Mosaic and Global Ship
Can any of the company-specific risk be diversified away by investing in both Mosaic and Global 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 Mosaic and Global Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Mosaic and Global Ship Lease, you can compare the effects of market volatilities on Mosaic and Global 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 Mosaic with a short position of Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mosaic and Global Ship.
Diversification Opportunities for Mosaic and Global Ship
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mosaic and Global is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding The Mosaic and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease and Mosaic 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 The Mosaic are associated (or correlated) with Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of Mosaic i.e., Mosaic and Global Ship go up and down completely randomly.
Pair Corralation between Mosaic and Global Ship
Assuming the 90 days horizon The Mosaic is expected to generate 1.49 times more return on investment than Global Ship. However, Mosaic is 1.49 times more volatile than Global Ship Lease. It trades about 0.06 of its potential returns per unit of risk. Global Ship Lease is currently generating about -0.01 per unit of risk. If you would invest 2,336 in The Mosaic on September 15, 2024 and sell it today you would earn a total of 184.00 from holding The Mosaic or generate 7.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
The Mosaic vs. Global Ship Lease
Performance |
Timeline |
Mosaic |
Global Ship Lease |
Mosaic and Global Ship Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mosaic and Global Ship
The main advantage of trading using opposite Mosaic and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mosaic position performs unexpectedly, Global 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 Global Ship will offset losses from the drop in Global Ship's long position.Mosaic vs. Global Ship Lease | Mosaic vs. MCEWEN MINING INC | Mosaic vs. GRIFFIN MINING LTD | Mosaic vs. Datalogic SpA |
Global Ship vs. SPARTAN STORES | Global Ship vs. Consolidated Communications Holdings | Global Ship vs. Zoom Video Communications | Global Ship vs. RETAIL FOOD GROUP |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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