Correlation Between Dynagas LNG and United Maritime
Can any of the company-specific risk be diversified away by investing in both Dynagas LNG and United Maritime 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 Dynagas LNG and United Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynagas LNG Partners and United Maritime, you can compare the effects of market volatilities on Dynagas LNG and United Maritime 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 Dynagas LNG with a short position of United Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynagas LNG and United Maritime.
Diversification Opportunities for Dynagas LNG and United Maritime
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dynagas and United is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Dynagas LNG Partners and United Maritime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Maritime and Dynagas LNG 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 Dynagas LNG Partners are associated (or correlated) with United Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Maritime has no effect on the direction of Dynagas LNG i.e., Dynagas LNG and United Maritime go up and down completely randomly.
Pair Corralation between Dynagas LNG and United Maritime
Given the investment horizon of 90 days Dynagas LNG Partners is expected to generate 1.15 times more return on investment than United Maritime. However, Dynagas LNG is 1.15 times more volatile than United Maritime. It trades about 0.05 of its potential returns per unit of risk. United Maritime is currently generating about -0.01 per unit of risk. If you would invest 300.00 in Dynagas LNG Partners on September 25, 2024 and sell it today you would earn a total of 198.00 from holding Dynagas LNG Partners or generate 66.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Dynagas LNG Partners vs. United Maritime
Performance |
Timeline |
Dynagas LNG Partners |
United Maritime |
Dynagas LNG and United Maritime Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dynagas LNG and United Maritime
The main advantage of trading using opposite Dynagas LNG and United Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynagas LNG position performs unexpectedly, United Maritime 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 United Maritime will offset losses from the drop in United Maritime's long position.Dynagas LNG vs. United Maritime | Dynagas LNG vs. Globus Maritime | Dynagas LNG vs. Castor Maritime | Dynagas LNG vs. Safe Bulkers |
United Maritime vs. TOP Ships | United Maritime vs. Globus Maritime | United Maritime vs. Castor Maritime | United Maritime vs. Safe Bulkers |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |