Correlation Between COSCO SHIPPING and Costamare
Can any of the company-specific risk be diversified away by investing in both COSCO SHIPPING and Costamare 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 COSCO SHIPPING and Costamare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSCO SHIPPING International and Costamare, you can compare the effects of market volatilities on COSCO SHIPPING and Costamare 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 COSCO SHIPPING with a short position of Costamare. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSCO SHIPPING and Costamare.
Diversification Opportunities for COSCO SHIPPING and Costamare
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between COSCO and Costamare is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding COSCO SHIPPING International and Costamare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Costamare and COSCO SHIPPING 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 COSCO SHIPPING International are associated (or correlated) with Costamare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Costamare has no effect on the direction of COSCO SHIPPING i.e., COSCO SHIPPING and Costamare go up and down completely randomly.
Pair Corralation between COSCO SHIPPING and Costamare
Assuming the 90 days horizon COSCO SHIPPING International is expected to generate 3.11 times more return on investment than Costamare. However, COSCO SHIPPING is 3.11 times more volatile than Costamare. It trades about 0.08 of its potential returns per unit of risk. Costamare is currently generating about 0.05 per unit of risk. If you would invest 26.00 in COSCO SHIPPING International on September 14, 2024 and sell it today you would earn a total of 20.00 from holding COSCO SHIPPING International or generate 76.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 38.99% |
Values | Daily Returns |
COSCO SHIPPING International vs. Costamare
Performance |
Timeline |
COSCO SHIPPING Inter |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Costamare |
COSCO SHIPPING and Costamare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with COSCO SHIPPING and Costamare
The main advantage of trading using opposite COSCO SHIPPING and Costamare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSCO SHIPPING position performs unexpectedly, Costamare 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 Costamare will offset losses from the drop in Costamare's long position.COSCO SHIPPING vs. Toro | COSCO SHIPPING vs. Seanergy Maritime Holdings | COSCO SHIPPING vs. Globus Maritime | COSCO SHIPPING vs. TOP Ships |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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