Correlation Between Costamare and Digimarc
Can any of the company-specific risk be diversified away by investing in both Costamare and Digimarc 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 Costamare and Digimarc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Costamare and Digimarc, you can compare the effects of market volatilities on Costamare and Digimarc 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 Costamare with a short position of Digimarc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Costamare and Digimarc.
Diversification Opportunities for Costamare and Digimarc
Very good diversification
The 3 months correlation between Costamare and Digimarc is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Costamare and Digimarc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digimarc and Costamare 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 Costamare are associated (or correlated) with Digimarc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digimarc has no effect on the direction of Costamare i.e., Costamare and Digimarc go up and down completely randomly.
Pair Corralation between Costamare and Digimarc
Given the investment horizon of 90 days Costamare is expected to generate 0.69 times more return on investment than Digimarc. However, Costamare is 1.45 times less risky than Digimarc. It trades about 0.05 of its potential returns per unit of risk. Digimarc is currently generating about -0.02 per unit of risk. If you would invest 919.00 in Costamare on January 23, 2024 and sell it today you would earn a total of 199.00 from holding Costamare or generate 21.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Costamare vs. Digimarc
Performance |
| Timeline |
| Costamare |
| Digimarc |
Costamare and Digimarc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Costamare and Digimarc
The main advantage of trading using opposite Costamare and Digimarc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Costamare position performs unexpectedly, Digimarc 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 Digimarc will offset losses from the drop in Digimarc's long position.| Costamare vs. Global Ship Lease | Costamare vs. Navios Maritime Partners | Costamare vs. United Maritime | Costamare vs. Top Ships |
| Digimarc vs. Digatrade Financial Corp | Digimarc vs. Information Services Group | Digimarc vs. Widepoint C | Digimarc vs. Usio Inc |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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