Correlation Between Employers Holdings and Okeanis Eco

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

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

Diversification Opportunities for Employers Holdings and Okeanis Eco

-0.74

Correlation Coefficient

Employers Holdings  Okeanis Eco

Pay attention - limited upside

The 3 months correlation between Employers and Okeanis is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Employers Holdings 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 Employers Holdings 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 Employers Holdings 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 Employers Holdings i.e., Employers Holdings and Okeanis Eco go up and down completely randomly.

Pair Corralation between Employers Holdings and Okeanis Eco

Considering the 90-day investment horizon Employers Holdings is expected to under-perform the Okeanis Eco. But the stock apears to be less risky and, when comparing its historical volatility, Employers Holdings is 3.03 times less risky than Okeanis Eco. The stock trades about -0.31 of its potential returns per unit of risk. The Okeanis Eco Tankers is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  2,179  in Okeanis Eco Tankers on October 6, 2024 and sell it today you would lose (63.00) from holding Okeanis Eco Tankers or give up 2.89% of portfolio value over 90 days.

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

Employers Holdings  vs.  Okeanis Eco Tankers

Employers Holdings

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Employers Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable forward indicators, Employers Holdings is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

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 abnormal performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Employers Holdings and Okeanis Eco

The main advantage of trading using opposite Employers Holdings and Okeanis Eco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Employers Holdings 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 Employers Holdings 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.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.