Correlation Between Diana Shipping and Okeanis Eco

Can any of the company-specific risk be diversified away by investing in both Diana Shipping and Okeanis Eco 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 Diana Shipping and Okeanis Eco into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Diana Shipping and Okeanis Eco Tankers, you can compare the effects of market volatilities on Diana Shipping and Okeanis Eco 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 Diana Shipping with a short position of Okeanis Eco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diana Shipping and Okeanis Eco.

Diversification Opportunities for Diana Shipping and Okeanis Eco

-0.05

Correlation Coefficient

Diana Shipping  Okeanis Eco

Good diversification

The 3 months correlation between Diana and Okeanis is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Diana Shipping and Okeanis Eco Tankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Okeanis Eco Tankers and Diana Shipping 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 Diana Shipping are associated (or correlated) with Okeanis Eco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Okeanis Eco Tankers has no effect on the direction of Diana Shipping i.e., Diana Shipping and Okeanis Eco go up and down completely randomly.

Pair Corralation between Diana Shipping and Okeanis Eco

Considering the 90-day investment horizon Diana Shipping is expected to under-perform the Okeanis Eco. But the stock apears to be less risky and, when comparing its historical volatility, Diana Shipping is 1.59 times less risky than Okeanis Eco. The stock trades about -0.09 of its potential returns per unit of risk. The Okeanis Eco Tankers is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  2,067  in Okeanis Eco Tankers on December 27, 2024 and sell it today you would earn a total of  125.00  from holding Okeanis Eco Tankers or generate 6.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Diana Shipping  vs.  Okeanis Eco Tankers

Diana Shipping

Risk-Adjusted Performance

Very Weak

Over the last 90 days Diana Shipping has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Okeanis Eco Tankers

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Okeanis Eco Tankers are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting fundamental indicators, Okeanis Eco may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Diana Shipping and Okeanis Eco

The main advantage of trading using opposite Diana Shipping and Okeanis Eco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diana Shipping position performs unexpectedly, Okeanis Eco 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 Okeanis Eco will offset losses from the drop in Okeanis Eco's long position.

The idea behind Diana Shipping and Okeanis Eco Tankers pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.