Correlation Between Marine Petroleum and Euronav NV
Can any of the company-specific risk be diversified away by investing in both Marine Petroleum and Euronav NV 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 Marine Petroleum and Euronav NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Petroleum Trust and Euronav NV, you can compare the effects of market volatilities on Marine Petroleum and Euronav NV 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 Marine Petroleum with a short position of Euronav NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Petroleum and Euronav NV.
Diversification Opportunities for Marine Petroleum and Euronav NV
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Marine and Euronav is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Marine Petroleum Trust and Euronav NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euronav NV and Marine Petroleum 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 Marine Petroleum Trust are associated (or correlated) with Euronav NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euronav NV has no effect on the direction of Marine Petroleum i.e., Marine Petroleum and Euronav NV go up and down completely randomly.
Pair Corralation between Marine Petroleum and Euronav NV
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 Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Marine Petroleum Trust vs. Euronav NV
Performance |
| Timeline |
| Marine Petroleum Trust |
| Euronav NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marine Petroleum and Euronav NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Petroleum and Euronav NV
The main advantage of trading using opposite Marine Petroleum and Euronav NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Petroleum position performs unexpectedly, Euronav NV 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 Euronav NV will offset losses from the drop in Euronav NV's long position.| Marine Petroleum vs. GasLog Partners LP | Marine Petroleum vs. GasLog Partners LP | Marine Petroleum vs. Brooge Holdings | Marine Petroleum vs. Dynagas LNG Partners |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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