Correlation Between Okeanis Eco and Golden Ocean
Can any of the company-specific risk be diversified away by investing in both Okeanis Eco and Golden Ocean 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 Golden Ocean 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 Golden Ocean Group, you can compare the effects of market volatilities on Okeanis Eco and Golden Ocean 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 Golden Ocean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okeanis Eco and Golden Ocean.
Diversification Opportunities for Okeanis Eco and Golden Ocean
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Okeanis and Golden is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Okeanis Eco Tankers and Golden Ocean Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Ocean Group 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 Golden Ocean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Ocean Group has no effect on the direction of Okeanis Eco i.e., Okeanis Eco and Golden Ocean go up and down completely randomly.
Pair Corralation between Okeanis Eco and Golden Ocean
Assuming the 90 days trading horizon Okeanis Eco Tankers is expected to under-perform the Golden Ocean. In addition to that, Okeanis Eco is 1.26 times more volatile than Golden Ocean Group. It trades about -0.27 of its total potential returns per unit of risk. Golden Ocean Group is currently generating about 0.1 per unit of volatility. If you would invest 11,735 in Golden Ocean Group on August 29, 2024 and sell it today you would earn a total of 510.00 from holding Golden Ocean Group or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Okeanis Eco Tankers vs. Golden Ocean Group
Performance |
| Timeline |
| Okeanis Eco Tankers |
| Golden Ocean Group |
Okeanis Eco and Golden Ocean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okeanis Eco and Golden Ocean
The main advantage of trading using opposite Okeanis Eco and Golden Ocean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okeanis Eco position performs unexpectedly, Golden Ocean 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 Golden Ocean will offset losses from the drop in Golden Ocean's long position.| Okeanis Eco vs. Hafnia | Okeanis Eco vs. 2020 Bulkers | Okeanis Eco vs. Hunter Group ASA | Okeanis Eco vs. Frontline |
| Golden Ocean vs. Frontline | Golden Ocean vs. BW LPG | Golden Ocean vs. FLEX LNG | Golden Ocean vs. Dampskibsselskabet Norden AS |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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