Correlation Between International Seaways and EURN Old
Can any of the company-specific risk be diversified away by investing in both International Seaways and EURN Old 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 International Seaways and EURN Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Seaways and EURN Old, you can compare the effects of market volatilities on International Seaways and EURN Old 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 International Seaways with a short position of EURN Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Seaways and EURN Old.
Diversification Opportunities for International Seaways and EURN Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between International and EURN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding International Seaways and EURN Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EURN Old and International Seaways 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 International Seaways are associated (or correlated) with EURN Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EURN Old has no effect on the direction of International Seaways i.e., International Seaways and EURN Old go up and down completely randomly.
Pair Corralation between International Seaways and EURN Old
Given the investment horizon of 90 days International Seaways is expected to generate 2.22 times less return on investment than EURN Old. But when comparing it to its historical volatility, International Seaways is 1.01 times less risky than EURN Old. It trades about 0.04 of its potential returns per unit of risk. EURN Old is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 906.00 in EURN Old on October 21, 2024 and sell it today you would earn a total of 725.00 from holding EURN Old or generate 80.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 73.79% |
| Values | Daily Returns |
International Seaways vs. EURN Old
Performance |
| Timeline |
| International Seaways |
| EURN Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
International Seaways and EURN Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Seaways and EURN Old
The main advantage of trading using opposite International Seaways and EURN Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Seaways position performs unexpectedly, EURN Old 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 EURN Old will offset losses from the drop in EURN Old's long position.| International Seaways vs. Teekay Tankers | International Seaways vs. Frontline | International Seaways vs. DHT Holdings | International Seaways vs. Scorpio Tankers |
| EURN Old vs. Frontline | EURN Old vs. Teekay Tankers | EURN Old vs. Scorpio Tankers | EURN Old vs. DHT Holdings |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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