Correlation Between Castor Maritime and Performance Shipping

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

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

Diversification Opportunities for Castor Maritime and Performance Shipping

-0.19

Correlation Coefficient

Castor Maritime  Performance Shipping

Good diversification

The 3 months correlation between Castor and Performance is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Castor Maritime and Performance Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Shipping 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 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 Castor Maritime i.e., Castor Maritime and Performance Shipping go up and down completely randomly.

Pair Corralation between Castor Maritime and Performance Shipping

Given the investment horizon of 90 days Castor Maritime is expected to under-perform the Performance Shipping. But the stock apears to be less risky and, when comparing its historical volatility, Castor Maritime is 1.56 times less risky than Performance Shipping. The stock trades about -0.05 of its potential returns per unit of risk. The Performance Shipping is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  168.00  in Performance Shipping on July 3, 2025 and sell it today you would earn a total of  21.00  from holding Performance Shipping or generate 12.5% return on investment over 90 days.

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

Castor Maritime  vs.  Performance Shipping

Castor Maritime

Risk-Adjusted Performance

Weakest

Over the last 90 days Castor Maritime has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Performance Shipping

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Performance Shipping are ranked lower than 5 (%) 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 Castor Maritime and Performance Shipping

The main advantage of trading using opposite Castor Maritime and Performance Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castor Maritime 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 Castor Maritime 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.

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 Money Managers module to screen money managers from public funds and ETFs managed around the world.