Correlation Between Oceanpal and Globus Maritime
Can any of the company-specific risk be diversified away by investing in both Oceanpal 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 Oceanpal and Globus Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oceanpal and Globus Maritime, you can compare the effects of market volatilities on Oceanpal 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 Oceanpal with a short position of Globus Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oceanpal and Globus Maritime.
Diversification Opportunities for Oceanpal and Globus Maritime
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oceanpal and Globus is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Oceanpal and Globus Maritime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globus Maritime and Oceanpal 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 Oceanpal 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 Oceanpal i.e., Oceanpal and Globus Maritime go up and down completely randomly.
Pair Corralation between Oceanpal and Globus Maritime
Allowing for the 90-day total investment horizon Oceanpal is expected to under-perform the Globus Maritime. But the stock apears to be less risky and, when comparing its historical volatility, Oceanpal is 1.08 times less risky than Globus Maritime. The stock trades about -0.13 of its potential returns per unit of risk. The 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 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 |
Oceanpal vs. Globus Maritime
Performance |
Timeline |
Oceanpal |
Globus Maritime |
Oceanpal and Globus Maritime Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oceanpal and Globus Maritime
The main advantage of trading using opposite Oceanpal and Globus Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oceanpal 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.Oceanpal vs. Genco Shipping Trading | Oceanpal vs. Golden Ocean Group | Oceanpal vs. Star Bulk Carriers | Oceanpal vs. TOP Ships |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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