Correlation Between Pangaea Logistic and Icon Energy
Can any of the company-specific risk be diversified away by investing in both Pangaea Logistic and Icon Energy 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 Pangaea Logistic and Icon Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pangaea Logistic and Icon Energy Corp, you can compare the effects of market volatilities on Pangaea Logistic and Icon Energy 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 Pangaea Logistic with a short position of Icon Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pangaea Logistic and Icon Energy.
Diversification Opportunities for Pangaea Logistic and Icon Energy
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pangaea and Icon is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Pangaea Logistic and Icon Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Energy Corp and Pangaea Logistic 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 Pangaea Logistic are associated (or correlated) with Icon Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Energy Corp has no effect on the direction of Pangaea Logistic i.e., Pangaea Logistic and Icon Energy go up and down completely randomly.
Pair Corralation between Pangaea Logistic and Icon Energy
Given the investment horizon of 90 days Pangaea Logistic is expected to under-perform the Icon Energy. But the stock apears to be less risky and, when comparing its historical volatility, Pangaea Logistic is 2.41 times less risky than Icon Energy. The stock trades about -0.02 of its potential returns per unit of risk. The Icon Energy Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 358.00 in Icon Energy Corp on September 14, 2024 and sell it today you would lose (43.00) from holding Icon Energy Corp or give up 12.01% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 40.52% |
Values | Daily Returns |
Pangaea Logistic vs. Icon Energy Corp
Performance |
Timeline |
Pangaea Logistic |
Icon Energy Corp |
Pangaea Logistic and Icon Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pangaea Logistic and Icon Energy
The main advantage of trading using opposite Pangaea Logistic and Icon Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pangaea Logistic position performs unexpectedly, Icon Energy 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 Icon Energy will offset losses from the drop in Icon Energy's long position.Pangaea Logistic vs. EuroDry | Pangaea Logistic vs. Costamare | Pangaea Logistic vs. Global Ship Lease | Pangaea Logistic vs. Danaos |
Icon Energy vs. Western Acquisition Ventures | Icon Energy vs. Inflection Point Acquisition | Icon Energy vs. Boyd Gaming | Icon Energy vs. Papaya Growth Opportunity |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Stocks Directory Find actively traded stocks across global markets | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Commodity Directory Find actively traded commodities issued by global exchanges |