Correlation Between Pyxis Tankers and Pangaea Logistic

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

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

Diversification Opportunities for Pyxis Tankers and Pangaea Logistic

-0.26

Correlation Coefficient

Pyxis Tankers  Pangaea Logistic

Very good diversification

The 3 months correlation between Pyxis and Pangaea is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Pyxis Tankers and Pangaea Logistic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pangaea Logistic and Pyxis Tankers 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 Pyxis Tankers are associated (or correlated) with Pangaea Logistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pangaea Logistic has no effect on the direction of Pyxis Tankers i.e., Pyxis Tankers and Pangaea Logistic go up and down completely randomly.

Pair Corralation between Pyxis Tankers and Pangaea Logistic

Considering the 90-day investment horizon Pyxis Tankers is expected to under-perform the Pangaea Logistic. But the stock apears to be less risky and, when comparing its historical volatility, Pyxis Tankers is 1.15 times less risky than Pangaea Logistic. The stock trades about -0.04 of its potential returns per unit of risk. The Pangaea Logistic is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  396.00  in Pangaea Logistic on May 6, 2025 and sell it today you would earn a total of  63.00  from holding Pangaea Logistic or generate 15.91% return on investment over 90 days.

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

Pyxis Tankers  vs.  Pangaea Logistic

Pyxis Tankers

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pyxis Tankers 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 stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pangaea Logistic

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pangaea Logistic are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Pangaea Logistic disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pyxis Tankers and Pangaea Logistic

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

The idea behind Pyxis Tankers and Pangaea Logistic 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.