Correlation Between Pyxis Tankers and Matson

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

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

Diversification Opportunities for Pyxis Tankers and Matson

-0.77

Correlation Coefficient

Pyxis Tankers  Matson

Pay attention - limited upside

The 3 months correlation between Pyxis and Matson is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Pyxis Tankers and Matson Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matson Inc and Pyxis Tankers 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 Pyxis Tankers are associated (or correlated) with Matson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matson Inc has no effect on the direction of Pyxis Tankers i.e., Pyxis Tankers and Matson go up and down completely randomly.

Pair Corralation between Pyxis Tankers and Matson

Considering the 90-day investment horizon Pyxis Tankers is expected to under-perform the Matson. But the stock apears to be less risky and, when comparing its historical volatility, Pyxis Tankers is 1.53 times less risky than Matson. The stock trades about -0.25 of its potential returns per unit of risk. The Matson Inc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  13,440  in Matson Inc on September 3, 2024 and sell it today you would earn a total of  1,878  from holding Matson Inc or generate 13.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Pyxis Tankers  vs.  Matson Inc

Pyxis Tankers

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pyxis Tankers has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting 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.

Matson Inc

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Matson Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Matson showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pyxis Tankers and Matson

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

The idea behind Pyxis Tankers and Matson Inc 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.