Correlation Between Ardmore Shpng and Performance Shipping

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

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

Diversification Opportunities for Ardmore Shpng and Performance Shipping

0.62

Correlation Coefficient

Ardmore Shpng  Performance Shipping

Poor diversification

The 3 months correlation between Ardmore and Performance is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ardmore Shpng and Performance Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Shipping and Ardmore Shpng 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 Ardmore Shpng are associated (or correlated) with Performance Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Shipping has no effect on the direction of Ardmore Shpng i.e., Ardmore Shpng and Performance Shipping go up and down completely randomly.

Pair Corralation between Ardmore Shpng and Performance Shipping

Considering the 90-day investment horizon Ardmore Shpng is expected to generate 5.13 times less return on investment than Performance Shipping. But when comparing it to its historical volatility, Ardmore Shpng is 1.86 times less risky than Performance Shipping. It trades about 0.05 of its potential returns per unit of risk. Performance Shipping is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  137.00  in Performance Shipping on April 25, 2025 and sell it today you would earn a total of  47.00  from holding Performance Shipping or generate 34.31% return on investment over 90 days.

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

Ardmore Shpng  vs.  Performance Shipping

Ardmore Shpng

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ardmore Shpng are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, Ardmore Shpng may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Performance Shipping

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Performance Shipping are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical indicators, Performance Shipping reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ardmore Shpng and Performance Shipping

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

The idea behind Ardmore Shpng and Performance Shipping 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.