Correlation Between 2020 Bulkers and Cadeler As
Can any of the company-specific risk be diversified away by investing in both 2020 Bulkers and Cadeler As 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 2020 Bulkers and Cadeler As into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 2020 Bulkers and Cadeler As, you can compare the effects of market volatilities on 2020 Bulkers and Cadeler As 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 2020 Bulkers with a short position of Cadeler As. Check out your portfolio center. Please also check ongoing floating volatility patterns of 2020 Bulkers and Cadeler As.
Diversification Opportunities for 2020 Bulkers and Cadeler As
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 2020 and Cadeler is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding 2020 Bulkers and Cadeler As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadeler As and 2020 Bulkers 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 2020 Bulkers are associated (or correlated) with Cadeler As. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadeler As has no effect on the direction of 2020 Bulkers i.e., 2020 Bulkers and Cadeler As go up and down completely randomly.
Pair Corralation between 2020 Bulkers and Cadeler As
Assuming the 90 days trading horizon 2020 Bulkers is expected to generate 0.86 times more return on investment than Cadeler As. However, 2020 Bulkers is 1.16 times less risky than Cadeler As. It trades about 0.15 of its potential returns per unit of risk. Cadeler As is currently generating about 0.02 per unit of risk. If you would invest 11,525 in 2020 Bulkers on June 3, 2025 and sell it today you would earn a total of 1,985 from holding 2020 Bulkers or generate 17.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
2020 Bulkers vs. Cadeler As
Performance |
| Timeline |
| 2020 Bulkers |
| Cadeler As |
2020 Bulkers and Cadeler As Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 2020 Bulkers and Cadeler As
The main advantage of trading using opposite 2020 Bulkers and Cadeler As positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 2020 Bulkers position performs unexpectedly, Cadeler As 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 Cadeler As will offset losses from the drop in Cadeler As' long position.| 2020 Bulkers vs. MPC Container Ships | 2020 Bulkers vs. Hoegh Autoliners ASA | 2020 Bulkers vs. Klaveness Combination Carriers |
| Cadeler As vs. 2020 Bulkers | Cadeler As vs. BW LPG | Cadeler As vs. Frontline | Cadeler As vs. Avance Gas Holding |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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