Correlation Between Okeanis Eco and Frontline
Can any of the company-specific risk be diversified away by investing in both Okeanis Eco 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 Okeanis Eco and Frontline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okeanis Eco Tankers and Frontline, you can compare the effects of market volatilities on Okeanis Eco 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 Okeanis Eco with a short position of Frontline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okeanis Eco and Frontline.
Diversification Opportunities for Okeanis Eco and Frontline
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Okeanis and Frontline is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Okeanis Eco Tankers and Frontline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frontline and Okeanis Eco 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 Okeanis Eco Tankers 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 Okeanis Eco i.e., Okeanis Eco and Frontline go up and down completely randomly.
Pair Corralation between Okeanis Eco and Frontline
Assuming the 90 days trading horizon Okeanis Eco Tankers is expected to under-perform the Frontline. In addition to that, Okeanis Eco is 1.49 times more volatile than Frontline. It trades about -0.27 of its total potential returns per unit of risk. Frontline is currently generating about -0.07 per unit of volatility. If you would invest 21,550 in Frontline on August 28, 2024 and sell it today you would lose (700.00) from holding Frontline or give up 3.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Okeanis Eco Tankers vs. Frontline
Performance |
| Timeline |
| Okeanis Eco Tankers |
| Frontline |
Okeanis Eco and Frontline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okeanis Eco and Frontline
The main advantage of trading using opposite Okeanis Eco and Frontline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okeanis Eco 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.| Okeanis Eco vs. Hafnia | Okeanis Eco vs. 2020 Bulkers | Okeanis Eco vs. Hunter Group ASA | Okeanis Eco vs. Frontline |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| 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 | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |