Correlation Between GAMCO Global and Okeanis Eco

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

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

Diversification Opportunities for GAMCO Global and Okeanis Eco

0.94

Correlation Coefficient

GAMCO Global  Okeanis Eco

Almost no diversification

The 3 months correlation between GAMCO and Okeanis is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding GAMCO Global Gold 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 GAMCO Global 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 GAMCO Global Gold 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 GAMCO Global i.e., GAMCO Global and Okeanis Eco go up and down completely randomly.

Pair Corralation between GAMCO Global and Okeanis Eco

Assuming the 90 days trading horizon GAMCO Global is expected to generate 11.61 times less return on investment than Okeanis Eco. But when comparing it to its historical volatility, GAMCO Global Gold is 2.68 times less risky than Okeanis Eco. It trades about 0.01 of its potential returns per unit of risk. Okeanis Eco Tankers is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,734  in Okeanis Eco Tankers on October 3, 2024 and sell it today you would earn a total of  392.00  from holding Okeanis Eco Tankers or generate 22.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	85.09%
Values	Daily Returns

GAMCO Global Gold  vs.  Okeanis Eco Tankers

GAMCO Global Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GAMCO Global Gold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Preferred 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

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 February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with GAMCO Global and Okeanis Eco

The main advantage of trading using opposite GAMCO Global and Okeanis Eco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMCO Global 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 GAMCO Global Gold 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 Commodity Directory module to find actively traded commodities issued by global exchanges.