Correlation Between Tsakos Energy and Imperial Petroleum
Can any of the company-specific risk be diversified away by investing in both Tsakos Energy and Imperial Petroleum 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 Tsakos Energy and Imperial Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tsakos Energy Navigation and Imperial Petroleum, you can compare the effects of market volatilities on Tsakos Energy and Imperial Petroleum 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 Tsakos Energy with a short position of Imperial Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsakos Energy and Imperial Petroleum.
Diversification Opportunities for Tsakos Energy and Imperial Petroleum
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tsakos and Imperial is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Tsakos Energy Navigation and Imperial Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imperial Petroleum and Tsakos Energy 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 Tsakos Energy Navigation are associated (or correlated) with Imperial Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imperial Petroleum has no effect on the direction of Tsakos Energy i.e., Tsakos Energy and Imperial Petroleum go up and down completely randomly.
Pair Corralation between Tsakos Energy and Imperial Petroleum
Considering the 90-day investment horizon Tsakos Energy Navigation is expected to under-perform the Imperial Petroleum. In addition to that, Tsakos Energy is 1.14 times more volatile than Imperial Petroleum. It trades about -0.14 of its total potential returns per unit of risk. Imperial Petroleum is currently generating about -0.13 per unit of volatility. If you would invest 406.00 in Imperial Petroleum on August 24, 2024 and sell it today you would lose (66.00) from holding Imperial Petroleum or give up 16.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsakos Energy Navigation vs. Imperial Petroleum
Performance |
| Timeline |
| Tsakos Energy Navigation |
| Imperial Petroleum |
Tsakos Energy and Imperial Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsakos Energy and Imperial Petroleum
The main advantage of trading using opposite Tsakos Energy and Imperial Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsakos Energy position performs unexpectedly, Imperial Petroleum 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 Imperial Petroleum will offset losses from the drop in Imperial Petroleum's long position.| Tsakos Energy vs. Doubledown Interactive Co | Tsakos Energy vs. Golden Matrix Group | Tsakos Energy vs. Flex | Tsakos Energy vs. Analog Devices |
| Imperial Petroleum vs. CBL International Limited | Imperial Petroleum vs. Mirage Energy Corp | Imperial Petroleum vs. Marine Petroleum Trust | Imperial Petroleum vs. Teekay 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |