Correlation Between Ideanomics and StealthGas
Can any of the company-specific risk be diversified away by investing in both Ideanomics and StealthGas 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 Ideanomics and StealthGas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ideanomics and StealthGas, you can compare the effects of market volatilities on Ideanomics and StealthGas 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 Ideanomics with a short position of StealthGas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ideanomics and StealthGas.
Diversification Opportunities for Ideanomics and StealthGas
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ideanomics and StealthGas is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ideanomics and StealthGas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StealthGas and Ideanomics 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 Ideanomics are associated (or correlated) with StealthGas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StealthGas has no effect on the direction of Ideanomics i.e., Ideanomics and StealthGas go up and down completely randomly.
Pair Corralation between Ideanomics and StealthGas
Given the investment horizon of 90 days Ideanomics is expected to under-perform the StealthGas. In addition to that, Ideanomics is 4.04 times more volatile than StealthGas. It trades about -0.05 of its total potential returns per unit of risk. StealthGas is currently generating about 0.15 per unit of volatility. If you would invest 577.00 in StealthGas on January 25, 2024 and sell it today you would earn a total of 24.00 from holding StealthGas or generate 4.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ideanomics vs. StealthGas
Performance |
Timeline |
Ideanomics |
StealthGas |
Ideanomics and StealthGas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ideanomics and StealthGas
The main advantage of trading using opposite Ideanomics and StealthGas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ideanomics position performs unexpectedly, StealthGas 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 StealthGas will offset losses from the drop in StealthGas' long position.Ideanomics vs. Deere Company | Ideanomics vs. Caterpillar | Ideanomics vs. Lion Electric Corp | Ideanomics vs. Xos Inc |
StealthGas vs. Danaos | StealthGas vs. Global Ship Lease | StealthGas vs. Euroseas | StealthGas vs. Navios Maritime Partners |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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