Correlation Between Okeanis Eco and Integral

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

Diversification Opportunities for Okeanis Eco and Integral

0.03

Correlation Coefficient

Okeanis Eco  Integral

Significant diversification

The 3 months correlation between Okeanis and Integral is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Okeanis Eco Tankers and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science 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 Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of Okeanis Eco i.e., Okeanis Eco and Integral go up and down completely randomly.

Pair Corralation between Okeanis Eco and Integral

Considering the 90-day investment horizon Okeanis Eco Tankers is expected to under-perform the Integral. But the stock apears to be less risky and, when comparing its historical volatility, Okeanis Eco Tankers is 1.05 times less risky than Integral. The stock trades about -0.33 of its potential returns per unit of risk. The Integral Ad Science is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  1,051  in Integral Ad Science on December 1, 2024 and sell it today you would earn a total of  1.00  from holding Integral Ad Science or generate 0.1% return on investment over 90 days.

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

Okeanis Eco Tankers  vs.  Integral Ad Science

Okeanis Eco Tankers

Risk-Adjusted Performance

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 very healthy fundamental indicators, Okeanis Eco is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Integral Ad Science

Risk-Adjusted Performance

Very Weak

Over the last 90 days Integral Ad Science has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Okeanis Eco and Integral

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

The idea behind Okeanis Eco Tankers and Integral Ad Science 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.