Correlation Between Diana Shipping and Diana Shipping

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

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

Diversification Opportunities for Diana Shipping and Diana Shipping

-0.69

Correlation Coefficient

Diana Shipping  Diana Shipping

Excellent diversification

The 3 months correlation between Diana and Diana is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Diana Shipping and Diana Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diana Shipping and Diana Shipping 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 Diana Shipping are associated (or correlated) with Diana Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diana Shipping has no effect on the direction of Diana Shipping i.e., Diana Shipping and Diana Shipping go up and down completely randomly.

Pair Corralation between Diana Shipping and Diana Shipping

Considering the 90-day investment horizon Diana Shipping is expected to under-perform the Diana Shipping. In addition to that, Diana Shipping is 2.95 times more volatile than Diana Shipping. It trades about -0.09 of its total potential returns per unit of risk. Diana Shipping is currently generating about 0.14 per unit of volatility. If you would invest  2,525  in Diana Shipping on June 23, 2024 and sell it today you would earn a total of  155.00  from holding Diana Shipping or generate 6.14% return on investment over 90 days.

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

Diana Shipping  vs.  Diana Shipping

Diana Shipping

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Diana Shipping 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 strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Diana Shipping

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Diana Shipping are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Diana Shipping is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Diana Shipping and Diana Shipping

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

The idea behind Diana Shipping and Diana 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.