Correlation Between Eagle Bulk and Performance Shipping

Can any of the company-specific risk be diversified away by investing in both Eagle Bulk and Performance Shipping 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 Eagle Bulk and Performance Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eagle Bulk Shipping and Performance Shipping, you can compare the effects of market volatilities on Eagle Bulk and Performance Shipping 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 Eagle Bulk with a short position of Performance Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Bulk and Performance Shipping.

Diversification Opportunities for Eagle Bulk and Performance Shipping

0.0

Correlation Coefficient

Eagle Bulk  Performance Shipping

Pay attention - limited upside

The 3 months correlation between Eagle and Performance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Bulk Shipping and Performance Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Shipping and Eagle Bulk 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 Eagle Bulk Shipping are associated (or correlated) with Performance Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Shipping has no effect on the direction of Eagle Bulk i.e., Eagle Bulk and Performance Shipping go up and down completely randomly.

Pair Corralation between Eagle Bulk and Performance Shipping

If you would invest  4,350  in Eagle Bulk Shipping on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Eagle Bulk Shipping or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Eagle Bulk Shipping  vs.  Performance Shipping

Eagle Bulk Shipping

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eagle Bulk Shipping has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Eagle Bulk is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Performance Shipping

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Performance Shipping has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's technical indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Eagle Bulk and Performance Shipping

The main advantage of trading using opposite Eagle Bulk and Performance Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Bulk position performs unexpectedly, Performance Shipping 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 Performance Shipping will offset losses from the drop in Performance Shipping's long position.

The idea behind Eagle Bulk Shipping and Performance Shipping pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..