Correlation Between StealthGas and Grindrod Shipping

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

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

Diversification Opportunities for StealthGas and Grindrod Shipping

0.22

Correlation Coefficient

StealthGas  Grindrod Shipping

Modest diversification

The 3 months correlation between StealthGas and Grindrod is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding StealthGas and Grindrod Shipping Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grindrod Shipping and StealthGas 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 StealthGas are associated (or correlated) with Grindrod Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grindrod Shipping has no effect on the direction of StealthGas i.e., StealthGas and Grindrod Shipping go up and down completely randomly.

Pair Corralation between StealthGas and Grindrod Shipping

If you would invest (100.00) in Grindrod Shipping Holdings on September 13, 2024 and sell it today you would earn a total of  100.00  from holding Grindrod Shipping Holdings or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	0.0%
Values	Daily Returns

StealthGas  vs.  Grindrod Shipping Holdings

StealthGas

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days StealthGas has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Grindrod Shipping

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Grindrod Shipping Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Grindrod Shipping is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with StealthGas and Grindrod Shipping

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

The idea behind StealthGas and Grindrod Shipping Holdings 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 Stocks Directory module to find actively traded stocks across global markets.