Correlation Between Danaos and Cadeler AS
Can any of the company-specific risk be diversified away by investing in both Danaos 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 Danaos and Cadeler AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Danaos and Cadeler AS, you can compare the effects of market volatilities on Danaos 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 Danaos with a short position of Cadeler AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danaos and Cadeler AS.
Diversification Opportunities for Danaos and Cadeler AS
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Danaos and Cadeler is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Danaos and Cadeler AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadeler AS and Danaos 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 Danaos 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 Danaos i.e., Danaos and Cadeler AS go up and down completely randomly.
Pair Corralation between Danaos and Cadeler AS
Considering the 90-day investment horizon Danaos is expected to generate 0.44 times more return on investment than Cadeler AS. However, Danaos is 2.3 times less risky than Cadeler AS. It trades about 0.48 of its potential returns per unit of risk. Cadeler AS is currently generating about -0.09 per unit of risk. If you would invest 8,616 in Danaos on August 20, 2025 and sell it today you would earn a total of 909.00 from holding Danaos or generate 10.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Danaos vs. Cadeler AS
Performance |
| Timeline |
| Danaos |
| Cadeler AS |
Danaos and Cadeler AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Danaos and Cadeler AS
The main advantage of trading using opposite Danaos and Cadeler AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danaos 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's long position.| Danaos vs. Costamare | Danaos vs. Cadeler AS | Danaos vs. Navios Maritime Partners | Danaos vs. ZIM Integrated Shipping |
| Cadeler AS vs. Costamare | Cadeler AS vs. Navios Maritime Partners | Cadeler AS vs. Danaos | Cadeler AS vs. CMBTECH NV |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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