Correlation Between Pyxis Tankers and Kirby

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

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

Diversification Opportunities for Pyxis Tankers and Kirby

0.43

Correlation Coefficient

Pyxis Tankers  Kirby

Very weak diversification

The 3 months correlation between Pyxis and Kirby is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Pyxis Tankers and Kirby in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirby and Pyxis Tankers 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 Pyxis Tankers are associated (or correlated) with Kirby. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirby has no effect on the direction of Pyxis Tankers i.e., Pyxis Tankers and Kirby go up and down completely randomly.

Pair Corralation between Pyxis Tankers and Kirby

Considering the 90-day investment horizon Pyxis Tankers is expected to generate 1.45 times more return on investment than Kirby. However, Pyxis Tankers is 1.45 times more volatile than Kirby. It trades about 0.29 of its potential returns per unit of risk. Kirby is currently generating about -0.37 per unit of risk. If you would invest  362.00  in Pyxis Tankers on October 14, 2024 and sell it today you would earn a total of  50.00  from holding Pyxis Tankers or generate 13.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Pyxis Tankers  vs.  Kirby

Pyxis Tankers

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pyxis Tankers has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Kirby

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Pyxis Tankers and Kirby

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

The idea behind Pyxis Tankers and Kirby 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.