Correlation Between Overseas Shipholding and International Seaways
Can any of the company-specific risk be diversified away by investing in both Overseas Shipholding and International Seaways 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 Overseas Shipholding and International Seaways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Overseas Shipholding Group and International Seaways, you can compare the effects of market volatilities on Overseas Shipholding and International Seaways 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 Overseas Shipholding with a short position of International Seaways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Overseas Shipholding and International Seaways.
Diversification Opportunities for Overseas Shipholding and International Seaways
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Overseas and International is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Overseas Shipholding Group and International Seaways in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Seaways and Overseas Shipholding 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 Overseas Shipholding Group are associated (or correlated) with International Seaways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Seaways has no effect on the direction of Overseas Shipholding i.e., Overseas Shipholding and International Seaways go up and down completely randomly.
Pair Corralation between Overseas Shipholding and International Seaways
If you would invest 849.00 in Overseas Shipholding Group on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Overseas Shipholding Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Overseas Shipholding Group vs. International Seaways
Performance |
| Timeline |
| Overseas Shipholding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| International Seaways |
Overseas Shipholding and International Seaways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Overseas Shipholding and International Seaways
The main advantage of trading using opposite Overseas Shipholding and International Seaways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Overseas Shipholding position performs unexpectedly, International Seaways 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 International Seaways will offset losses from the drop in International Seaways' long position.| Overseas Shipholding vs. Teekay | Overseas Shipholding vs. Frontline | Overseas Shipholding vs. Alexander Baldwin Holdings | Overseas Shipholding vs. Torm PLC Class |
| International Seaways vs. Teekay Tankers | International Seaways vs. Frontline | International Seaways vs. DHT Holdings | International Seaways vs. Scorpio Tankers |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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