Correlation Between Euronav NV and FLEX LNG
Can any of the company-specific risk be diversified away by investing in both Euronav NV and FLEX LNG 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 Euronav NV and FLEX LNG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Euronav NV and FLEX LNG, you can compare the effects of market volatilities on Euronav NV and FLEX LNG 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 Euronav NV with a short position of FLEX LNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Euronav NV and FLEX LNG.
Diversification Opportunities for Euronav NV and FLEX LNG
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Euronav and FLEX is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Euronav NV and FLEX LNG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLEX LNG and Euronav NV 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 Euronav NV are associated (or correlated) with FLEX LNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLEX LNG has no effect on the direction of Euronav NV i.e., Euronav NV and FLEX LNG go up and down completely randomly.
Pair Corralation between Euronav NV and FLEX LNG
If you would invest 2,466 in FLEX LNG on August 27, 2024 and sell it today you would earn a total of 149.00 from holding FLEX LNG or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Euronav NV vs. FLEX LNG
Performance |
| Timeline |
| Euronav NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FLEX LNG |
Euronav NV and FLEX LNG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Euronav NV and FLEX LNG
The main advantage of trading using opposite Euronav NV and FLEX LNG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Euronav NV position performs unexpectedly, FLEX LNG 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 FLEX LNG will offset losses from the drop in FLEX LNG's long position.| Euronav NV vs. Frontline | Euronav NV vs. Teekay Tankers | Euronav NV vs. Scorpio Tankers | Euronav NV vs. DHT Holdings |
| FLEX LNG vs. Ucommune International | FLEX LNG vs. Lion Financial Group | FLEX LNG vs. HUMANA INC | FLEX LNG vs. Aquagold International |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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