Correlation Between Pyxis Tankers and Caravelle International

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

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

Diversification Opportunities for Pyxis Tankers and Caravelle International

-0.82

Correlation Coefficient

Pyxis Tankers  Caravelle International

Pay attention - limited upside

The 3 months correlation between Pyxis and Caravelle is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Pyxis Tankers and Caravelle International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caravelle International 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 Caravelle International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caravelle International has no effect on the direction of Pyxis Tankers i.e., Pyxis Tankers and Caravelle International go up and down completely randomly.

Pair Corralation between Pyxis Tankers and Caravelle International

Assuming the 90 days horizon Pyxis Tankers is expected to generate 9.84 times more return on investment than Caravelle International. However, Pyxis Tankers is 9.84 times more volatile than Caravelle International Group. It trades about 0.08 of its potential returns per unit of risk. Caravelle International Group is currently generating about 0.1 per unit of risk. If you would invest  110.00  in Pyxis Tankers on October 24, 2024 and sell it today you would lose (93.52) from holding Pyxis Tankers or give up 85.02% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	69.23%
Values	Daily Returns

Pyxis Tankers  vs.  Caravelle International Group

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 abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Caravelle International

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Caravelle International Group are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting fundamental indicators, Caravelle International displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pyxis Tankers and Caravelle International

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

The idea behind Pyxis Tankers and Caravelle International Group 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.