Correlation Between TOP Ships and Globus Maritime
Can any of the company-specific risk be diversified away by investing in both TOP Ships and Globus Maritime 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 TOP Ships and Globus Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TOP Ships and Globus Maritime, you can compare the effects of market volatilities on TOP Ships and Globus Maritime 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 TOP Ships with a short position of Globus Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOP Ships and Globus Maritime.
Diversification Opportunities for TOP Ships and Globus Maritime
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TOP and Globus is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding TOP Ships and Globus Maritime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globus Maritime and TOP Ships 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 TOP Ships are associated (or correlated) with Globus Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globus Maritime has no effect on the direction of TOP Ships i.e., TOP Ships and Globus Maritime go up and down completely randomly.
Pair Corralation between TOP Ships and Globus Maritime
Given the investment horizon of 90 days TOP Ships is expected to under-perform the Globus Maritime. In addition to that, TOP Ships is 1.12 times more volatile than Globus Maritime. It trades about -0.21 of its total potential returns per unit of risk. Globus Maritime is currently generating about -0.08 per unit of volatility. If you would invest 106.00 in Globus Maritime on June 7, 2025 and sell it today you would lose (4.00) from holding Globus Maritime or give up 3.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOP Ships vs. Globus Maritime
Performance |
| Timeline |
| TOP Ships |
| Globus Maritime |
TOP Ships and Globus Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOP Ships and Globus Maritime
The main advantage of trading using opposite TOP Ships and Globus Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOP Ships position performs unexpectedly, Globus Maritime 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 Globus Maritime will offset losses from the drop in Globus Maritime's long position.| TOP Ships vs. Seanergy Maritime Holdings | TOP Ships vs. Globus Maritime | TOP Ships vs. United Maritime | TOP Ships vs. Performance Shipping |
| Globus Maritime vs. TOP Ships | Globus Maritime vs. Seanergy Maritime Holdings | Globus Maritime vs. Euroseas | Globus Maritime vs. Castor Maritime |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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