Correlation Between Kirby and Okeanis Eco
Can any of the company-specific risk be diversified away by investing in both Kirby 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 Kirby and Okeanis Eco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kirby and Okeanis Eco Tankers, you can compare the effects of market volatilities on Kirby 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 Kirby with a short position of Okeanis Eco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kirby and Okeanis Eco.
Diversification Opportunities for Kirby and Okeanis Eco
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kirby and Okeanis is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Kirby 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 Kirby 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 Kirby 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 Kirby i.e., Kirby and Okeanis Eco go up and down completely randomly.
Pair Corralation between Kirby and Okeanis Eco
Considering the 90-day investment horizon Kirby is expected to generate 2.0 times less return on investment than Okeanis Eco. But when comparing it to its historical volatility, Kirby is 2.31 times less risky than Okeanis Eco. It trades about 0.09 of its potential returns per unit of risk. Okeanis Eco Tankers is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,205 in Okeanis Eco Tankers on August 27, 2024 and sell it today you would earn a total of 1,153 from holding Okeanis Eco Tankers or generate 95.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.29% |
| Values | Daily Returns |
Kirby vs. Okeanis Eco Tankers
Performance |
| Timeline |
| Kirby |
| Okeanis Eco Tankers |
Kirby and Okeanis Eco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kirby and Okeanis Eco
The main advantage of trading using opposite Kirby and Okeanis Eco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirby 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.The idea behind Kirby and Okeanis Eco Tankers pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Okeanis Eco vs. NETGEAR | Okeanis Eco vs. Kaltura | Okeanis Eco vs. National Beverage Corp | Okeanis Eco vs. Meiwu Technology Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |