Frontline Correlations

FRO Stock

USD 15.81 0.10 0.63%

The current 90-days correlation between Frontline and Teekay Tankers is 0.85 (i.e., Very poor diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Frontline moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Frontline moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

Frontline Correlation With Market

Significant diversification

The correlation between Frontline and DJI is 0.05 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Frontline and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Frontline. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.

To learn how to invest in Frontline Stock, please use our How to Invest in Frontline guide.

Moving together with Frontline Stock

0.68	TK	Teekay	Pair Corr
0.78	FLNG	FLEX LNG	Pair Corr
0.94	DHT	DHT Holdings	Pair Corr
0.64	ENB	Enbridge	Pair Corr
0.66	EPD	Enterprise Products	Pair Corr
0.81	NAT	Nordic American Tankers	Pair Corr
0.71	PAA	Plains All American Sell-off Trend	Pair Corr
0.63	SMC	Summit Midstream Symbol Change	Pair Corr
0.66	TEN	Tsakos Energy Navigation Symbol Change	Pair Corr
0.7	TNK	Teekay Tankers	Pair Corr

Moving against Frontline Stock

0.44	BPT	BP Prudhoe Bay	Pair Corr
0.36	MMLP	Martin Midstream Partners	Pair Corr

Related Correlations Analysis

	TNK	DHT	INSW	STNG	EURN	TNP
TNK		0.48	0.93	0.72	0.0	0.0	TNK
DHT	0.48		0.61	-0.13	0.0	0.0	DHT
INSW	0.93	0.61		0.59	0.0	0.0	INSW
STNG	0.72	-0.13	0.59		0.0	0.0	STNG
EURN	0.0	0.0	0.0	0.0		0.0	EURN
TNP	0.0	0.0	0.0	0.0	0.0		TNP
	TNK	DHT	INSW	STNG	EURN	TNP

Click cells to compare fundamentals

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

INSW	+ 0.93	TNK
STNG	+ 0.72	TNK
INSW	+ 0.61	DHT
STNG	+ 0.59	INSW
DHT	+ 0.48	TNK
EURN	+ 0.0	TNK

High negative correlations

STNG	- 0.13	DHT
TNP	- 0.0	EURN
TNP	- 0.0	STNG
EURN	- 0.0	STNG
TNP	- 0.0	INSW
EURN	- 0.0	INSW

Risk-Adjusted Indicators

There is a big difference between Frontline Stock performing well and Frontline Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Frontline's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
TNK	2.11	0.09	0.08	(0.85)	2.46	(2.51)	4.88	(5.05)	13.51
DHT	1.79	0.37	0.20	1.39	2.02	(1.94)	3.84	(4.37)	12.13
INSW	2.29	0.19	0.10	0.72	2.57	(2.50)	6.56	(4.45)	16.80
STNG	1.84	(0.25)	0.00	0.43	0.00	0.00	3.51	(3.25)	19.16
EURN	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
TNP	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

Frontline Corporate Executives

Elected by the shareholders, the Frontline's board of directors comprises two types of representatives: Frontline inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Frontline. The board's role is to monitor Frontline's management team and ensure that shareholders' interests are well served. Frontline's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Frontline's outside directors are responsible for providing unbiased perspectives on the board's policies.

Inger Klemp

Chief Financial Officer of Frontline Management AS, Principal Financial Officer

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