Correlation Between Okeanis Eco and Pangaea Logistic
Can any of the company-specific risk be diversified away by investing in both Okeanis Eco 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 Okeanis Eco and Pangaea Logistic 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 Pangaea Logistic, you can compare the effects of market volatilities on Okeanis Eco 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 Okeanis Eco with a short position of Pangaea Logistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okeanis Eco and Pangaea Logistic.
Diversification Opportunities for Okeanis Eco and Pangaea Logistic
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Okeanis and Pangaea is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Okeanis Eco Tankers and Pangaea Logistic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pangaea Logistic 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 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 Okeanis Eco i.e., Okeanis Eco and Pangaea Logistic go up and down completely randomly.
Pair Corralation between Okeanis Eco and Pangaea Logistic
Considering the 90-day investment horizon Okeanis Eco Tankers is expected to generate 2.25 times more return on investment than Pangaea Logistic. However, Okeanis Eco is 2.25 times more volatile than Pangaea Logistic. It trades about 0.18 of its potential returns per unit of risk. Pangaea Logistic is currently generating about -0.14 per unit of risk. If you would invest 2,158 in Okeanis Eco Tankers on November 2, 2024 and sell it today you would earn a total of 277.00 from holding Okeanis Eco Tankers or generate 12.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Okeanis Eco Tankers vs. Pangaea Logistic
Performance |
| Timeline |
| Okeanis Eco Tankers |
| Pangaea Logistic |
Okeanis Eco and Pangaea Logistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okeanis Eco and Pangaea Logistic
The main advantage of trading using opposite Okeanis Eco and Pangaea Logistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okeanis Eco 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.| Okeanis Eco vs. Rocky Brands | Okeanis Eco vs. Skechers USA | Okeanis Eco vs. Weyco Group | Okeanis Eco vs. Church Dwight |
| Pangaea Logistic vs. EuroDry | Pangaea Logistic vs. Costamare | Pangaea Logistic vs. Global Ship Lease | Pangaea Logistic vs. Danaos |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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