Correlation Between Navios Maritime and Okeanis Eco

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

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

Diversification Opportunities for Navios Maritime and Okeanis Eco

0.22

Correlation Coefficient

Navios Maritime  Okeanis Eco

Modest diversification

The 3 months correlation between Navios and Okeanis is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Navios Maritime Partners 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 Navios Maritime 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 Navios Maritime Partners 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 Navios Maritime i.e., Navios Maritime and Okeanis Eco go up and down completely randomly.

Pair Corralation between Navios Maritime and Okeanis Eco

Considering the 90-day investment horizon Navios Maritime Partners is expected to under-perform the Okeanis Eco. But the stock apears to be less risky and, when comparing its historical volatility, Navios Maritime Partners is 1.57 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 0.07 of returns per unit of risk over similar time horizon. If you would invest  2,035  in Okeanis Eco Tankers on December 28, 2024 and sell it today you would earn a total of  222.00  from holding Okeanis Eco Tankers or generate 10.91% return on investment over 90 days.

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

Navios Maritime Partners  vs.  Okeanis Eco Tankers

Navios Maritime Partners

Risk-Adjusted Performance

Very Weak

Over the last 90 days Navios Maritime Partners has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's primary indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Okeanis Eco Tankers

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Okeanis Eco Tankers are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Okeanis Eco displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Navios Maritime and Okeanis Eco

The main advantage of trading using opposite Navios Maritime and Okeanis Eco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navios Maritime 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 Navios Maritime Partners 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.