Correlation Between Broadwind Energy and Global Ship
Can any of the company-specific risk be diversified away by investing in both Broadwind Energy and Global Ship 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 Broadwind Energy and Global Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broadwind Energy and Global Ship Lease, you can compare the effects of market volatilities on Broadwind Energy and Global Ship 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 Broadwind Energy with a short position of Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadwind Energy and Global Ship.
Diversification Opportunities for Broadwind Energy and Global Ship
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Broadwind and Global is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Broadwind Energy and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease and Broadwind Energy 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 Broadwind Energy are associated (or correlated) with Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of Broadwind Energy i.e., Broadwind Energy and Global Ship go up and down completely randomly.
Pair Corralation between Broadwind Energy and Global Ship
Given the investment horizon of 90 days Broadwind Energy is expected to generate 3.32 times more return on investment than Global Ship. However, Broadwind Energy is 3.32 times more volatile than Global Ship Lease. It trades about 0.04 of its potential returns per unit of risk. Global Ship Lease is currently generating about 0.05 per unit of risk. If you would invest 226.00 in Broadwind Energy on July 20, 2025 and sell it today you would earn a total of 10.00 from holding Broadwind Energy or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Broadwind Energy vs. Global Ship Lease
Performance |
| Timeline |
| Broadwind Energy |
| Global Ship Lease |
Broadwind Energy and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broadwind Energy and Global Ship
The main advantage of trading using opposite Broadwind Energy and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadwind Energy position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship's long position.| Broadwind Energy vs. Babcock Wilcox Enterprises | Broadwind Energy vs. Franklin Electric Co | Broadwind Energy vs. Crane Company | Broadwind Energy vs. American Superconductor |
| Global Ship vs. Danaos | Global Ship vs. Genco Shipping Trading | Global Ship vs. Costamare | Global Ship vs. Global X Funds |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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