Correlation Between ADS Maritime and Arctic Fish

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

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

Diversification Opportunities for ADS Maritime and Arctic Fish

-0.52

Correlation Coefficient

ADS Maritime  Arctic Fish

Excellent diversification

The 3 months correlation between ADS and Arctic is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding ADS Maritime Holding and Arctic Fish Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arctic Fish Holding and ADS 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 ADS Maritime Holding are associated (or correlated) with Arctic Fish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arctic Fish Holding has no effect on the direction of ADS Maritime i.e., ADS Maritime and Arctic Fish go up and down completely randomly.

Pair Corralation between ADS Maritime and Arctic Fish

Assuming the 90 days trading horizon ADS Maritime Holding is expected to generate 0.52 times more return on investment than Arctic Fish. However, ADS Maritime Holding is 1.93 times less risky than Arctic Fish. It trades about 0.03 of its potential returns per unit of risk. Arctic Fish Holding is currently generating about -0.09 per unit of risk. If you would invest  204.00  in ADS Maritime Holding on April 25, 2025 and sell it today you would earn a total of  4.00  from holding ADS Maritime Holding or generate 1.96% return on investment over 90 days.

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

ADS Maritime Holding  vs.  Arctic Fish Holding

ADS Maritime Holding

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ADS Maritime Holding are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, ADS Maritime is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Arctic Fish Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Arctic Fish Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with ADS Maritime and Arctic Fish

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

The idea behind ADS Maritime Holding and Arctic Fish Holding 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.