Correlation Between Okeanis Eco and Hafnia
Can any of the company-specific risk be diversified away by investing in both Okeanis Eco and Hafnia 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 Hafnia 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 Hafnia, you can compare the effects of market volatilities on Okeanis Eco and Hafnia 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 Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okeanis Eco and Hafnia.
Diversification Opportunities for Okeanis Eco and Hafnia
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Okeanis and Hafnia is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Okeanis Eco Tankers and Hafnia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia 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 Hafnia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hafnia has no effect on the direction of Okeanis Eco i.e., Okeanis Eco and Hafnia go up and down completely randomly.
Pair Corralation between Okeanis Eco and Hafnia
Assuming the 90 days trading horizon Okeanis Eco Tankers is expected to generate 1.18 times more return on investment than Hafnia. However, Okeanis Eco is 1.18 times more volatile than Hafnia. It trades about 0.14 of its potential returns per unit of risk. Hafnia is currently generating about -0.1 per unit of risk. If you would invest 24,850 in Okeanis Eco Tankers on November 3, 2024 and sell it today you would earn a total of 2,600 from holding Okeanis Eco Tankers or generate 10.46% 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. Hafnia
Performance |
| Timeline |
| Okeanis Eco Tankers |
| Hafnia |
Okeanis Eco and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okeanis Eco and Hafnia
The main advantage of trading using opposite Okeanis Eco and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okeanis Eco position performs unexpectedly, Hafnia 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 Hafnia will offset losses from the drop in Hafnia'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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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