Correlation Between Okeanis Eco and SITC International
Can any of the company-specific risk be diversified away by investing in both Okeanis Eco and SITC International 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 SITC International 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 SITC International Holdings, you can compare the effects of market volatilities on Okeanis Eco and SITC International 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 SITC International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okeanis Eco and SITC International.
Diversification Opportunities for Okeanis Eco and SITC International
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Okeanis and SITC is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Okeanis Eco Tankers and SITC International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SITC International 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 SITC International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SITC International has no effect on the direction of Okeanis Eco i.e., Okeanis Eco and SITC International go up and down completely randomly.
Pair Corralation between Okeanis Eco and SITC International
Assuming the 90 days horizon Okeanis Eco Tankers is expected to generate 0.81 times more return on investment than SITC International. However, Okeanis Eco Tankers is 1.24 times less risky than SITC International. It trades about 0.14 of its potential returns per unit of risk. SITC International Holdings is currently generating about 0.08 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 | Very Weak |
| Accuracy | 30.85% |
| Values | Daily Returns |
Okeanis Eco Tankers vs. SITC International Holdings
Performance |
| Timeline |
| Okeanis Eco Tankers |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SITC International |
Okeanis Eco and SITC International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okeanis Eco and SITC International
The main advantage of trading using opposite Okeanis Eco and SITC International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okeanis Eco position performs unexpectedly, SITC International 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 SITC International will offset losses from the drop in SITC International'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 |
| SITC International vs. COSCO SHIPPING Development | SITC International vs. COSCO SHIPPING Holdings | SITC International vs. Nippon Yusen Kabushiki | SITC International vs. Western Bulk Chartering |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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