Correlation Between United Maritime and Excelerate Energy
Can any of the company-specific risk be diversified away by investing in both United Maritime and Excelerate 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 United Maritime and Excelerate Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Maritime and Excelerate Energy, you can compare the effects of market volatilities on United Maritime and Excelerate 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 United Maritime with a short position of Excelerate Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Maritime and Excelerate Energy.
Diversification Opportunities for United Maritime and Excelerate Energy
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Excelerate is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding United Maritime and Excelerate Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excelerate Energy and United Maritime 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 United Maritime are associated (or correlated) with Excelerate Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excelerate Energy has no effect on the direction of United Maritime i.e., United Maritime and Excelerate Energy go up and down completely randomly.
Pair Corralation between United Maritime and Excelerate Energy
Given the investment horizon of 90 days United Maritime is expected to under-perform the Excelerate Energy. But the stock apears to be less risky and, when comparing its historical volatility, United Maritime is 1.14 times less risky than Excelerate Energy. The stock trades about -0.01 of its potential returns per unit of risk. The Excelerate Energy is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,393 in Excelerate Energy on September 25, 2024 and sell it today you would earn a total of 662.00 from holding Excelerate Energy or generate 27.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
United Maritime vs. Excelerate Energy
Performance |
Timeline |
United Maritime |
Excelerate Energy |
United Maritime and Excelerate Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with United Maritime and Excelerate Energy
The main advantage of trading using opposite United Maritime and Excelerate Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Maritime position performs unexpectedly, Excelerate 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 Excelerate Energy will offset losses from the drop in Excelerate Energy's long position.United Maritime vs. TOP Ships | United Maritime vs. Globus Maritime | United Maritime vs. Castor Maritime | United Maritime vs. Safe Bulkers |
Excelerate Energy vs. United Maritime | Excelerate Energy vs. Globus Maritime | Excelerate Energy vs. Castor Maritime | Excelerate Energy vs. Safe Bulkers |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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