Correlation Between HE Equipment and Okeanis Eco
Can any of the company-specific risk be diversified away by investing in both HE Equipment and Okeanis Eco 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 HE Equipment and Okeanis Eco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HE Equipment Services and Okeanis Eco Tankers, you can compare the effects of market volatilities on HE Equipment and Okeanis Eco 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 HE Equipment with a short position of Okeanis Eco. Check out your portfolio center. Please also check ongoing floating volatility patterns of HE Equipment and Okeanis Eco.
Diversification Opportunities for HE Equipment and Okeanis Eco
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HEES and Okeanis is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding HE Equipment Services and Okeanis Eco Tankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Okeanis Eco Tankers and HE Equipment 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 HE Equipment Services are associated (or correlated) with Okeanis Eco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Okeanis Eco Tankers has no effect on the direction of HE Equipment i.e., HE Equipment and Okeanis Eco go up and down completely randomly.
Pair Corralation between HE Equipment and Okeanis Eco
Given the investment horizon of 90 days HE Equipment Services is expected to generate 1.22 times more return on investment than Okeanis Eco. However, HE Equipment is 1.22 times more volatile than Okeanis Eco Tankers. It trades about 0.06 of its potential returns per unit of risk. Okeanis Eco Tankers is currently generating about -0.33 per unit of risk. If you would invest 5,468 in HE Equipment Services on August 24, 2024 and sell it today you would earn a total of 200.00 from holding HE Equipment Services or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HE Equipment Services vs. Okeanis Eco Tankers
Performance |
| Timeline |
| HE Equipment Services |
| Okeanis Eco Tankers |
HE Equipment and Okeanis Eco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HE Equipment and Okeanis Eco
The main advantage of trading using opposite HE Equipment and Okeanis Eco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HE Equipment position performs unexpectedly, Okeanis Eco 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 Okeanis Eco will offset losses from the drop in Okeanis Eco's long position.| HE Equipment vs. GATX Corporation | HE Equipment vs. McGrath RentCorp | HE Equipment vs. Alta Equipment Group | HE Equipment vs. Ryder System |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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