Correlation Between Okeanis Eco and Mitsui OSK
Can any of the company-specific risk be diversified away by investing in both Okeanis Eco and Mitsui OSK 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 Mitsui OSK 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 Mitsui OSK Lines, you can compare the effects of market volatilities on Okeanis Eco and Mitsui OSK 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 Mitsui OSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okeanis Eco and Mitsui OSK.
Diversification Opportunities for Okeanis Eco and Mitsui OSK
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Okeanis and Mitsui is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Okeanis Eco Tankers and Mitsui OSK Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsui OSK Lines 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 Mitsui OSK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsui OSK Lines has no effect on the direction of Okeanis Eco i.e., Okeanis Eco and Mitsui OSK go up and down completely randomly.
Pair Corralation between Okeanis Eco and Mitsui OSK
Assuming the 90 days horizon Okeanis Eco Tankers is expected to generate 1.84 times more return on investment than Mitsui OSK. However, Okeanis Eco is 1.84 times more volatile than Mitsui OSK Lines. It trades about 0.14 of its potential returns per unit of risk. Mitsui OSK Lines is currently generating about 0.05 per unit of risk. If you would invest 1,040 in Okeanis Eco Tankers on September 2, 2024 and sell it today you would earn a total of 1,215 from holding Okeanis Eco Tankers or generate 116.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 30.85% |
| Values | Daily Returns |
Okeanis Eco Tankers vs. Mitsui OSK Lines
Performance |
| Timeline |
| Okeanis Eco Tankers |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mitsui OSK Lines |
Okeanis Eco and Mitsui OSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okeanis Eco and Mitsui OSK
The main advantage of trading using opposite Okeanis Eco and Mitsui OSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okeanis Eco position performs unexpectedly, Mitsui OSK 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 Mitsui OSK will offset losses from the drop in Mitsui OSK's long position.| Okeanis Eco vs. MPC Container Ships | Okeanis Eco vs. ZIM Integrated Shipping | Okeanis Eco vs. Hutchison Port Holdings | Okeanis Eco vs. Mitsui OSK Lines |
| Mitsui OSK vs. AP Mller | Mitsui OSK vs. COSCO SHIPPING Holdings | Mitsui OSK vs. Orient Overseas Limited |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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