Correlation Between Castor Maritime and Clover Health

Can any of the company-specific risk be diversified away by investing in both Castor Maritime and Clover Health 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 Castor Maritime and Clover Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Castor Maritime and Clover Health Investments, you can compare the effects of market volatilities on Castor Maritime and Clover Health 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 Castor Maritime with a short position of Clover Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castor Maritime and Clover Health.

Diversification Opportunities for Castor Maritime and Clover Health

-0.01

Correlation Coefficient

Castor Maritime  Clover Health

Good diversification

The 3 months correlation between Castor and Clover is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Castor Maritime and Clover Health Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clover Health Investments and Castor 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 Castor Maritime are associated (or correlated) with Clover Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clover Health Investments has no effect on the direction of Castor Maritime i.e., Castor Maritime and Clover Health go up and down completely randomly.

Pair Corralation between Castor Maritime and Clover Health

Given the investment horizon of 90 days Castor Maritime is expected to generate 0.73 times more return on investment than Clover Health. However, Castor Maritime is 1.37 times less risky than Clover Health. It trades about -0.01 of its potential returns per unit of risk. Clover Health Investments is currently generating about -0.06 per unit of risk. If you would invest  225.00  in Castor Maritime on May 5, 2025 and sell it today you would lose (8.00) from holding Castor Maritime or give up 3.56% of portfolio value over 90 days.

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

Castor Maritime  vs.  Clover Health Investments

Castor Maritime

Risk-Adjusted Performance

Very Weak

Over the last 90 days Castor Maritime has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Castor Maritime is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Clover Health Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Clover Health Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Castor Maritime and Clover Health

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

The idea behind Castor Maritime and Clover Health Investments 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.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.