Correlation Between Okeanis Eco and StealthGas

Can any of the company-specific risk be diversified away by investing in both Okeanis Eco and StealthGas 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 StealthGas 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 StealthGas, you can compare the effects of market volatilities on Okeanis Eco and StealthGas 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 StealthGas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okeanis Eco and StealthGas.

Diversification Opportunities for Okeanis Eco and StealthGas

0.95

Correlation Coefficient

Okeanis Eco  StealthGas

Almost no diversification

The 3 months correlation between Okeanis and StealthGas is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Okeanis Eco Tankers and StealthGas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StealthGas 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 StealthGas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StealthGas has no effect on the direction of Okeanis Eco i.e., Okeanis Eco and StealthGas go up and down completely randomly.

Pair Corralation between Okeanis Eco and StealthGas

Considering the 90-day investment horizon Okeanis Eco Tankers is expected to generate 1.07 times more return on investment than StealthGas. However, Okeanis Eco is 1.07 times more volatile than StealthGas. It trades about -0.09 of its potential returns per unit of risk. StealthGas is currently generating about -0.12 per unit of risk. If you would invest  2,953  in Okeanis Eco Tankers on September 29, 2024 and sell it today you would lose (851.00) from holding Okeanis Eco Tankers or give up 28.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Okeanis Eco Tankers  vs.  StealthGas

Okeanis Eco Tankers

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Okeanis Eco Tankers has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

StealthGas

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days StealthGas has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Okeanis Eco and StealthGas

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

The idea behind Okeanis Eco Tankers and StealthGas 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.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.