Correlation Between Mitsui OSK and Pyxis Tankers

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

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

Diversification Opportunities for Mitsui OSK and Pyxis Tankers

0.0

Correlation Coefficient

Mitsui OSK  Pyxis Tankers

Pay attention - limited upside

The 3 months correlation between Mitsui and Pyxis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mitsui OSK Lines and Pyxis Tankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyxis Tankers and Mitsui OSK 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 Mitsui OSK Lines are associated (or correlated) with Pyxis Tankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyxis Tankers has no effect on the direction of Mitsui OSK i.e., Mitsui OSK and Pyxis Tankers go up and down completely randomly.

Pair Corralation between Mitsui OSK and Pyxis Tankers

If you would invest  1,667  in Mitsui OSK Lines on December 20, 2024 and sell it today you would earn a total of  168.00  from holding Mitsui OSK Lines or generate 10.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Mitsui OSK Lines  vs.  Pyxis Tankers

Mitsui OSK Lines

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mitsui OSK Lines are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Mitsui OSK may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pyxis Tankers

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pyxis Tankers has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Pyxis Tankers is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Mitsui OSK and Pyxis Tankers

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

The idea behind Mitsui OSK Lines and Pyxis 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.