Correlation Between Euronav NV and Frontline
Can any of the company-specific risk be diversified away by investing in both Euronav NV and Frontline 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 Frontline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Euronav NV and Frontline, you can compare the effects of market volatilities on Euronav NV and Frontline 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 Frontline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Euronav NV and Frontline.
Diversification Opportunities for Euronav NV and Frontline
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Euronav and Frontline is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Euronav NV and Frontline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frontline 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 Frontline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frontline has no effect on the direction of Euronav NV i.e., Euronav NV and Frontline go up and down completely randomly.
Pair Corralation between Euronav NV and Frontline
If you would invest 1,631 in Euronav NV on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Euronav NV or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Euronav NV vs. Frontline
Performance |
| Timeline |
| Euronav NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Frontline |
Euronav NV and Frontline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Euronav NV and Frontline
The main advantage of trading using opposite Euronav NV and Frontline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Euronav NV position performs unexpectedly, Frontline 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 Frontline will offset losses from the drop in Frontline's long position.| Euronav NV vs. Frontline | Euronav NV vs. Teekay Tankers | Euronav NV vs. Scorpio Tankers | Euronav NV vs. DHT Holdings |
| Frontline vs. Teekay Tankers | Frontline vs. DHT Holdings | Frontline vs. International Seaways | Frontline vs. Scorpio Tankers |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |