Correlation Between FIRST SHIP and T Rowe

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

By analyzing existing cross correlation between FIRST SHIP LEASE and T Rowe Price, you can compare the effects of market volatilities on FIRST SHIP and T Rowe 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 FIRST SHIP with a short position of T Rowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIRST SHIP and T Rowe.

Diversification Opportunities for FIRST SHIP and T Rowe

0.14

Correlation Coefficient

FIRST SHIP  T Rowe

Average diversification

The 3 months correlation between FIRST and TR1 is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding FIRST SHIP LEASE and T Rowe Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Rowe Price and FIRST 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 FIRST SHIP LEASE are associated (or correlated) with T Rowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Rowe Price has no effect on the direction of FIRST SHIP i.e., FIRST SHIP and T Rowe go up and down completely randomly.

Pair Corralation between FIRST SHIP and T Rowe

Assuming the 90 days horizon FIRST SHIP is expected to generate 2.84 times less return on investment than T Rowe. In addition to that, FIRST SHIP is 1.96 times more volatile than T Rowe Price. It trades about 0.03 of its total potential returns per unit of risk. T Rowe Price is currently generating about 0.19 per unit of volatility. If you would invest  7,491  in T Rowe Price on April 24, 2025 and sell it today you would earn a total of  1,505  from holding T Rowe Price or generate 20.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

FIRST SHIP LEASE  vs.  T Rowe Price

FIRST SHIP LEASE

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FIRST SHIP LEASE are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FIRST SHIP may actually be approaching a critical reversion point that can send shares even higher in August 2025.

T Rowe Price

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in T Rowe Price are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, T Rowe reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FIRST SHIP and T Rowe

The main advantage of trading using opposite FIRST SHIP and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIRST SHIP position performs unexpectedly, T Rowe 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 T Rowe will offset losses from the drop in T Rowe's long position.

The idea behind FIRST SHIP LEASE and T Rowe Price 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.