Correlation Between Okeanis Eco and Orient Overseas
Can any of the company-specific risk be diversified away by investing in both Okeanis Eco and Orient Overseas 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 Orient Overseas 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 Orient Overseas Limited, you can compare the effects of market volatilities on Okeanis Eco and Orient Overseas 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 Orient Overseas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okeanis Eco and Orient Overseas.
Diversification Opportunities for Okeanis Eco and Orient Overseas
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Okeanis and Orient is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Okeanis Eco Tankers and Orient Overseas Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orient Overseas 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 Orient Overseas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orient Overseas has no effect on the direction of Okeanis Eco i.e., Okeanis Eco and Orient Overseas go up and down completely randomly.
Pair Corralation between Okeanis Eco and Orient Overseas
Assuming the 90 days horizon Okeanis Eco is expected to generate 2.17 times less return on investment than Orient Overseas. But when comparing it to its historical volatility, Okeanis Eco Tankers is 4.2 times less risky than Orient Overseas. It trades about 0.14 of its potential returns per unit of risk. Orient Overseas Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,762 in Orient Overseas Limited on September 2, 2024 and sell it today you would lose (465.00) from holding Orient Overseas Limited or give up 26.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 44.74% |
| Values | Daily Returns |
Okeanis Eco Tankers vs. Orient Overseas Limited
Performance |
| Timeline |
| Okeanis Eco Tankers |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Orient Overseas |
Okeanis Eco and Orient Overseas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okeanis Eco and Orient Overseas
The main advantage of trading using opposite Okeanis Eco and Orient Overseas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okeanis Eco position performs unexpectedly, Orient Overseas 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 Orient Overseas will offset losses from the drop in Orient Overseas' 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 |
| Orient Overseas vs. SITC International Holdings | Orient Overseas vs. COSCO SHIPPING Holdings | Orient Overseas vs. Pacific Basin Shipping | Orient Overseas vs. Mitsui OSK Lines |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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