Correlation Between Pangaea Logistic and United Maritime

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

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

Diversification Opportunities for Pangaea Logistic and United Maritime

-0.09

Correlation Coefficient

Pangaea Logistic  United Maritime

Good diversification

The 3 months correlation between Pangaea and United is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Pangaea Logistic and United Maritime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Maritime and Pangaea Logistic 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 Pangaea Logistic are associated (or correlated) with United Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Maritime has no effect on the direction of Pangaea Logistic i.e., Pangaea Logistic and United Maritime go up and down completely randomly.

Pair Corralation between Pangaea Logistic and United Maritime

Given the investment horizon of 90 days Pangaea Logistic is expected to generate 0.87 times more return on investment than United Maritime. However, Pangaea Logistic is 1.14 times less risky than United Maritime. It trades about -0.01 of its potential returns per unit of risk. United Maritime is currently generating about -0.09 per unit of risk. If you would invest  520.00  in Pangaea Logistic on December 28, 2024 and sell it today you would lose (16.00) from holding Pangaea Logistic or give up 3.08% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Pangaea Logistic  vs.  United Maritime

Pangaea Logistic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pangaea Logistic has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Pangaea Logistic is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

United Maritime

Risk-Adjusted Performance

Very Weak

Over the last 90 days United Maritime has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Pangaea Logistic and United Maritime

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

The idea behind Pangaea Logistic and United Maritime 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.