Correlation Between Global Ship and CPLP Old
Can any of the company-specific risk be diversified away by investing in both Global Ship and CPLP Old 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 Global Ship and CPLP Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Ship Lease and CPLP Old, you can compare the effects of market volatilities on Global Ship and CPLP Old 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 Global Ship with a short position of CPLP Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and CPLP Old.
Diversification Opportunities for Global Ship and CPLP Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and CPLP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and CPLP Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPLP Old and Global 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 Global Ship Lease are associated (or correlated) with CPLP Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPLP Old has no effect on the direction of Global Ship i.e., Global Ship and CPLP Old go up and down completely randomly.
Pair Corralation between Global Ship and CPLP Old
If you would invest 2,093 in Global Ship Lease on December 18, 2024 and sell it today you would earn a total of 200.00 from holding Global Ship Lease or generate 9.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Global Ship Lease vs. CPLP Old
Performance |
Timeline |
Global Ship Lease |
CPLP Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Global Ship and CPLP Old Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global Ship and CPLP Old
The main advantage of trading using opposite Global Ship and CPLP Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship position performs unexpectedly, CPLP Old 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 CPLP Old will offset losses from the drop in CPLP Old's long position.Global Ship vs. Costamare | Global Ship vs. Navios Maritime Partners | Global Ship vs. Genco Shipping Trading | Global Ship vs. Star Bulk Carriers |
CPLP Old vs. Danaos | CPLP Old vs. Global Ship Lease | CPLP Old vs. Euroseas | CPLP Old vs. Navios Maritime Partners |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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