Correlation Between Global Ship and HELIOS TECHS

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

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

Diversification Opportunities for Global Ship and HELIOS TECHS

0.71

Correlation Coefficient

Global Ship  HELIOS TECHS

Poor diversification

The 3 months correlation between Global and HELIOS is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and HELIOS TECHS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HELIOS TECHS INC and Global Ship 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 Global Ship Lease are associated (or correlated) with HELIOS TECHS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HELIOS TECHS INC has no effect on the direction of Global Ship i.e., Global Ship and HELIOS TECHS go up and down completely randomly.

Pair Corralation between Global Ship and HELIOS TECHS

Assuming the 90 days horizon Global Ship Lease is expected to generate 0.75 times more return on investment than HELIOS TECHS. However, Global Ship Lease is 1.33 times less risky than HELIOS TECHS. It trades about 0.06 of its potential returns per unit of risk. HELIOS TECHS INC is currently generating about -0.04 per unit of risk. If you would invest  2,131  in Global Ship Lease on March 25, 2025 and sell it today you would earn a total of  177.00  from holding Global Ship Lease or generate 8.31% return on investment over 90 days.

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

Global Ship Lease  vs.  HELIOS TECHS INC

Global Ship Lease

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Global Ship Lease are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Global Ship may actually be approaching a critical reversion point that can send shares even higher in July 2025.

HELIOS TECHS INC

Risk-Adjusted Performance

Very Weak

Over the last 90 days HELIOS TECHS INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Global Ship and HELIOS TECHS

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

The idea behind Global Ship Lease and HELIOS TECHS INC 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.