Correlation Between First Ship and 91324PEQ1

Can any of the company-specific risk be diversified away by investing in both First Ship and 91324PEQ1 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 First Ship and 91324PEQ1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between First Ship Lease and UNH 53 15 FEB 30, you can compare the effects of market volatilities on First Ship and 91324PEQ1 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 First Ship with a short position of 91324PEQ1. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and 91324PEQ1.

Diversification Opportunities for First Ship and 91324PEQ1

0.0

Correlation Coefficient

First Ship  91324PEQ1

Pay attention - limited upside

The 3 months correlation between First and 91324PEQ1 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease and UNH 53 15 FEB 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNH 53 15 and First Ship 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 First Ship Lease are associated (or correlated) with 91324PEQ1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNH 53 15 has no effect on the direction of First Ship i.e., First Ship and 91324PEQ1 go up and down completely randomly.

Pair Corralation between First Ship and 91324PEQ1

If you would invest  10,131  in UNH 53 15 FEB 30 on December 25, 2024 and sell it today you would earn a total of  291.00  from holding UNH 53 15 FEB 30 or generate 2.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

First Ship Lease  vs.  UNH 53 15 FEB 30

First Ship Lease

Risk-Adjusted Performance

Very Weak

Over the last 90 days First Ship Lease has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, First Ship is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

UNH 53 15

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in UNH 53 15 FEB 30 are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 91324PEQ1 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with First Ship and 91324PEQ1

The main advantage of trading using opposite First Ship and 91324PEQ1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship position performs unexpectedly, 91324PEQ1 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 91324PEQ1 will offset losses from the drop in 91324PEQ1's long position.

The idea behind First Ship Lease and UNH 53 15 FEB 30 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.