Correlation Between Integral and Okeanis Eco

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

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

Diversification Opportunities for Integral and Okeanis Eco

0.03

Correlation Coefficient

Integral  Okeanis Eco

Significant diversification

The 3 months correlation between Integral and Okeanis is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science 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 Integral 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 Integral Ad Science 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 Integral i.e., Integral and Okeanis Eco go up and down completely randomly.

Pair Corralation between Integral and Okeanis Eco

Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the Okeanis Eco. But the stock apears to be less risky and, when comparing its historical volatility, Integral Ad Science is 1.62 times less risky than Okeanis Eco. The stock trades about -0.06 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  2,141  in Okeanis Eco Tankers on December 1, 2024 and sell it today you would lose (80.00) from holding Okeanis Eco Tankers or give up 3.74% of portfolio value over 90 days.

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

Integral Ad Science  vs.  Okeanis Eco Tankers

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.

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.

Pair Trading with Integral and Okeanis Eco

The main advantage of trading using opposite Integral and Okeanis Eco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral 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 Integral Ad Science 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.