Correlation Between DAmico International and Globus Maritime

Can any of the company-specific risk be diversified away by investing in both DAmico International and Globus 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 DAmico International and Globus Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between dAmico International Shipping and Globus Maritime, you can compare the effects of market volatilities on DAmico International and Globus 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 DAmico International with a short position of Globus Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAmico International and Globus Maritime.

Diversification Opportunities for DAmico International and Globus Maritime

0.93

Correlation Coefficient

DAmico International  Globus Maritime

Almost no diversification

The 3 months correlation between DAmico and Globus is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding dAmico International Shipping and Globus Maritime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globus Maritime and DAmico International 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 dAmico International Shipping are associated (or correlated) with Globus Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globus Maritime has no effect on the direction of DAmico International i.e., DAmico International and Globus Maritime go up and down completely randomly.

Pair Corralation between DAmico International and Globus Maritime

Assuming the 90 days horizon dAmico International Shipping is expected to generate 0.44 times more return on investment than Globus Maritime. However, dAmico International Shipping is 2.28 times less risky than Globus Maritime. It trades about -0.17 of its potential returns per unit of risk. Globus Maritime is currently generating about -0.22 per unit of risk. If you would invest  435.00  in dAmico International Shipping on September 27, 2024 and sell it today you would lose (28.00) from holding dAmico International Shipping or give up 6.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	95.45%
Values	Daily Returns

dAmico International Shipping  vs.  Globus Maritime

dAmico International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days dAmico International Shipping has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Globus Maritime

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Globus Maritime has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental drivers remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with DAmico International and Globus Maritime

The main advantage of trading using opposite DAmico International and Globus Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAmico International position performs unexpectedly, Globus 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 Globus Maritime will offset losses from the drop in Globus Maritime's long position.

The idea behind dAmico International Shipping and Globus Maritime pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.