Correlation Between Okeanis Eco and Icon Energy
Can any of the company-specific risk be diversified away by investing in both Okeanis Eco and Icon Energy 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 Okeanis Eco and Icon Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okeanis Eco Tankers and Icon Energy Corp, you can compare the effects of market volatilities on Okeanis Eco and Icon Energy 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 Okeanis Eco with a short position of Icon Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okeanis Eco and Icon Energy.
Diversification Opportunities for Okeanis Eco and Icon Energy
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Okeanis and Icon is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Okeanis Eco Tankers and Icon Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Energy Corp and Okeanis Eco 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 Okeanis Eco Tankers are associated (or correlated) with Icon Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Energy Corp has no effect on the direction of Okeanis Eco i.e., Okeanis Eco and Icon Energy go up and down completely randomly.
Pair Corralation between Okeanis Eco and Icon Energy
Considering the 90-day investment horizon Okeanis Eco Tankers is expected to generate 0.44 times more return on investment than Icon Energy. However, Okeanis Eco Tankers is 2.27 times less risky than Icon Energy. It trades about -0.01 of its potential returns per unit of risk. Icon Energy Corp is currently generating about -0.02 per unit of risk. If you would invest 2,443 in Okeanis Eco Tankers on September 2, 2024 and sell it today you would lose (225.00) from holding Okeanis Eco Tankers or give up 9.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 40.49% |
| Values | Daily Returns |
Okeanis Eco Tankers vs. Icon Energy Corp
Performance |
| Timeline |
| Okeanis Eco Tankers |
| Icon Energy Corp |
Okeanis Eco and Icon Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okeanis Eco and Icon Energy
The main advantage of trading using opposite Okeanis Eco and Icon Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okeanis Eco position performs unexpectedly, Icon Energy 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 Icon Energy will offset losses from the drop in Icon Energy's long position.| Okeanis Eco vs. Waste Management | Okeanis Eco vs. Videolocity International | Okeanis Eco vs. Canlan Ice Sports | Okeanis Eco vs. Zoom Video Communications |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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