Correlation Between Global Ship and Cabo Drilling
Can any of the company-specific risk be diversified away by investing in both Global Ship and Cabo Drilling 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 Global Ship and Cabo Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Ship Lease and Cabo Drilling Corp, you can compare the effects of market volatilities on Global Ship and Cabo Drilling 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 Global Ship with a short position of Cabo Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and Cabo Drilling.
Diversification Opportunities for Global Ship and Cabo Drilling
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Cabo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and Cabo Drilling Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabo Drilling Corp and Global Ship 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 Global Ship Lease are associated (or correlated) with Cabo Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabo Drilling Corp has no effect on the direction of Global Ship i.e., Global Ship and Cabo Drilling go up and down completely randomly.
Pair Corralation between Global Ship and Cabo Drilling
If you would invest 3,167 in Global Ship Lease on September 7, 2025 and sell it today you would earn a total of 451.00 from holding Global Ship Lease or generate 14.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Ship Lease vs. Cabo Drilling Corp
Performance |
| Timeline |
| Global Ship Lease |
| Cabo Drilling Corp |
Global Ship and Cabo Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and Cabo Drilling
The main advantage of trading using opposite Global Ship and Cabo Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship position performs unexpectedly, Cabo Drilling 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 Cabo Drilling will offset losses from the drop in Cabo Drilling's long position.| Global Ship vs. Baristas Coffee | Global Ship vs. My Screen Mobile | Global Ship vs. NorthPoint Communications Group | Global Ship vs. On4 Communications |
| Cabo Drilling vs. Altair Corp | Cabo Drilling vs. Wizz Air Holdings | Cabo Drilling vs. Shelf Drilling | Cabo Drilling vs. Mayfair Gold Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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