Correlation Between Globus Maritime and Oceanpal

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

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

Diversification Opportunities for Globus Maritime and Oceanpal

0.46

Correlation Coefficient

Globus Maritime  Oceanpal

Very weak diversification

The 3 months correlation between Globus and Oceanpal is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Globus Maritime and Oceanpal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oceanpal and Globus Maritime 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 Globus Maritime are associated (or correlated) with Oceanpal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oceanpal has no effect on the direction of Globus Maritime i.e., Globus Maritime and Oceanpal go up and down completely randomly.

Pair Corralation between Globus Maritime and Oceanpal

Given the investment horizon of 90 days Globus Maritime is expected to generate 1.08 times more return on investment than Oceanpal. However, Globus Maritime is 1.08 times more volatile than Oceanpal. It trades about 0.04 of its potential returns per unit of risk. Oceanpal is currently generating about -0.13 per unit of risk. If you would invest  116.00  in Globus Maritime on December 28, 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

Globus Maritime  vs.  Oceanpal

Globus Maritime

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Globus Maritime are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental drivers, Globus Maritime may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Oceanpal

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oceanpal has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Globus Maritime and Oceanpal

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

The idea behind Globus Maritime and Oceanpal 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.