Correlation Between Navios Maritime and Dynagas LNG
Can any of the company-specific risk be diversified away by investing in both Navios Maritime and Dynagas LNG 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 Navios Maritime and Dynagas LNG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Navios Maritime Holdings and Dynagas LNG Partners, you can compare the effects of market volatilities on Navios Maritime and Dynagas LNG 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 Navios Maritime with a short position of Dynagas LNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navios Maritime and Dynagas LNG.
Diversification Opportunities for Navios Maritime and Dynagas LNG
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Navios and Dynagas is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Navios Maritime Holdings and Dynagas LNG Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynagas LNG Partners and Navios 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 Navios Maritime Holdings are associated (or correlated) with Dynagas LNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynagas LNG Partners has no effect on the direction of Navios Maritime i.e., Navios Maritime and Dynagas LNG go up and down completely randomly.
Pair Corralation between Navios Maritime and Dynagas LNG
If you would invest 271.00 in Dynagas LNG Partners on January 26, 2024 and sell it today you would earn a total of 84.00 from holding Dynagas LNG Partners or generate 31.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Navios Maritime Holdings vs. Dynagas LNG Partners
Performance |
| Timeline |
| Navios Maritime Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Dynagas LNG Partners |
Navios Maritime and Dynagas LNG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navios Maritime and Dynagas LNG
The main advantage of trading using opposite Navios Maritime and Dynagas LNG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navios Maritime position performs unexpectedly, Dynagas LNG 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 Dynagas LNG will offset losses from the drop in Dynagas LNG's long position.| Navios Maritime vs. Diana Shipping inc | Navios Maritime vs. Genco Shipping Trading | Navios Maritime vs. Navios Maritime Partners | Navios Maritime vs. Euroseas |
| Dynagas LNG vs. ONEOK Inc | Dynagas LNG vs. Enterprise Products Partners | Dynagas LNG vs. Energy Transfer LP | Dynagas LNG vs. Kinder Morgan |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stocks Directory Find actively traded stocks across global markets |