Correlation Between Himalaya Shipping and Kirby

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

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

Diversification Opportunities for Himalaya Shipping and Kirby

0.6

Correlation Coefficient

Himalaya Shipping  Kirby

Poor diversification

The 3 months correlation between Himalaya and Kirby is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Himalaya Shipping and Kirby in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirby and Himalaya 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 Himalaya Shipping are associated (or correlated) with Kirby. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirby has no effect on the direction of Himalaya Shipping i.e., Himalaya Shipping and Kirby go up and down completely randomly.

Pair Corralation between Himalaya Shipping and Kirby

Given the investment horizon of 90 days Himalaya Shipping is expected to generate 0.77 times more return on investment than Kirby. However, Himalaya Shipping is 1.3 times less risky than Kirby. It trades about 0.19 of its potential returns per unit of risk. Kirby is currently generating about -0.02 per unit of risk. If you would invest  524.00  in Himalaya Shipping on May 6, 2025 and sell it today you would earn a total of  154.00  from holding Himalaya Shipping or generate 29.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Himalaya Shipping  vs.  Kirby

Himalaya Shipping

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Himalaya Shipping are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile technical indicators, Himalaya Shipping reported solid returns over the last few months and may actually be approaching a breakup point.

Kirby

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kirby has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Kirby is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Himalaya Shipping and Kirby

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

The idea behind Himalaya Shipping and Kirby 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.