Correlation Between Navios Maritime and Capital Clean

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

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

Diversification Opportunities for Navios Maritime and Capital Clean

0.69

Correlation Coefficient

Navios Maritime  Capital Clean

Poor diversification

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

Pair Corralation between Navios Maritime and Capital Clean

Considering the 90-day investment horizon Navios Maritime is expected to generate 1.08 times less return on investment than Capital Clean. But when comparing it to its historical volatility, Navios Maritime Partners is 1.26 times less risky than Capital Clean. It trades about 0.13 of its potential returns per unit of risk. Capital Clean Energy is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  2,001  in Capital Clean Energy on May 3, 2025 and sell it today you would earn a total of  310.00  from holding Capital Clean Energy or generate 15.49% return on investment over 90 days.

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

Navios Maritime Partners  vs.  Capital Clean Energy

Navios Maritime Partners

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Navios Maritime Partners are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady primary indicators, Navios Maritime displayed solid returns over the last few months and may actually be approaching a breakup point.

Capital Clean Energy

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Capital Clean Energy are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Capital Clean exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Navios Maritime and Capital Clean

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

The idea behind Navios Maritime Partners and Capital Clean Energy 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.