Correlation Between Costamare and Triton International
Can any of the company-specific risk be diversified away by investing in both Costamare and Triton International 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 Costamare and Triton International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Costamare and Triton International Limited, you can compare the effects of market volatilities on Costamare and Triton International 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 Costamare with a short position of Triton International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Costamare and Triton International.
Diversification Opportunities for Costamare and Triton International
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Costamare and Triton is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Costamare and Triton International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triton International and Costamare 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 Costamare are associated (or correlated) with Triton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triton International has no effect on the direction of Costamare i.e., Costamare and Triton International go up and down completely randomly.
Pair Corralation between Costamare and Triton International
Assuming the 90 days trading horizon Costamare is expected to under-perform the Triton International. In addition to that, Costamare is 4.15 times more volatile than Triton International Limited. It trades about -0.19 of its total potential returns per unit of risk. Triton International Limited is currently generating about 0.37 per unit of volatility. If you would invest 2,481 in Triton International Limited on September 17, 2024 and sell it today you would earn a total of 44.00 from holding Triton International Limited or generate 1.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Costamare vs. Triton International Limited
Performance |
Timeline |
Costamare |
Triton International |
Costamare and Triton International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Costamare and Triton International
The main advantage of trading using opposite Costamare and Triton International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Costamare position performs unexpectedly, Triton International 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 Triton International will offset losses from the drop in Triton International's long position.Costamare vs. Costamare | Costamare vs. Global Ship Lease | Costamare vs. Diana Shipping | Costamare vs. Costamare |
Triton International vs. Triton International Limited | Triton International vs. Triton International Limited | Triton International vs. Triton International Limited |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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