Correlation Between Elmera Group and Okeanis Eco

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

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

Diversification Opportunities for Elmera Group and Okeanis Eco

-0.51

Correlation Coefficient

Elmera Group  Okeanis Eco

Excellent diversification

The 3 months correlation between Elmera and Okeanis is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Elmera Group ASA 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 Elmera Group 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 Elmera Group ASA 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 Elmera Group i.e., Elmera Group and Okeanis Eco go up and down completely randomly.

Pair Corralation between Elmera Group and Okeanis Eco

Assuming the 90 days trading horizon Elmera Group ASA is expected to under-perform the Okeanis Eco. But the stock apears to be less risky and, when comparing its historical volatility, Elmera Group ASA is 1.04 times less risky than Okeanis Eco. The stock trades about -0.08 of its potential returns per unit of risk. The Okeanis Eco Tankers is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  24,264  in Okeanis Eco Tankers on December 1, 2024 and sell it today you would lose (914.00) from holding Okeanis Eco Tankers or give up 3.77% of portfolio value over 90 days.

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

Elmera Group ASA  vs.  Okeanis Eco Tankers

Elmera Group ASA

Risk-Adjusted Performance

Very Weak

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

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. Despite quite persistent basic indicators, Okeanis Eco is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Elmera Group and Okeanis Eco

The main advantage of trading using opposite Elmera Group and Okeanis Eco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmera Group 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 Elmera Group ASA 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.