Correlation Between StealthGas and Globus Maritime
Can any of the company-specific risk be diversified away by investing in both StealthGas 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 StealthGas and Globus Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between StealthGas and Globus Maritime, you can compare the effects of market volatilities on StealthGas 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 StealthGas with a short position of Globus Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of StealthGas and Globus Maritime.
Diversification Opportunities for StealthGas and Globus Maritime
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between StealthGas and Globus is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding StealthGas and Globus Maritime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globus Maritime and StealthGas 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 StealthGas 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 StealthGas i.e., StealthGas and Globus Maritime go up and down completely randomly.
Pair Corralation between StealthGas and Globus Maritime
Given the investment horizon of 90 days StealthGas is expected to generate 1.58 times less return on investment than Globus Maritime. But when comparing it to its historical volatility, StealthGas is 1.53 times less risky than Globus Maritime. It trades about 0.04 of its potential returns per unit of risk. Globus Maritime is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 116.00 in Globus Maritime on December 29, 2024 and sell it today you would earn a total of 5.00 from holding Globus Maritime or generate 4.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
StealthGas vs. Globus Maritime
Performance |
Timeline |
StealthGas |
Globus Maritime |
StealthGas and Globus Maritime Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with StealthGas and Globus Maritime
The main advantage of trading using opposite StealthGas and Globus Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StealthGas 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.StealthGas vs. Danaos | StealthGas vs. Global Ship Lease | StealthGas vs. Euroseas | StealthGas vs. Navios Maritime Partners |
Globus Maritime vs. Seanergy Maritime Holdings | Globus Maritime vs. United Maritime | Globus Maritime vs. Performance Shipping | Globus Maritime vs. Castor Maritime |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
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 | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |