Correlation Between Okeanis Eco and Hutchison Port

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

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

Diversification Opportunities for Okeanis Eco and Hutchison Port

0.59

Correlation Coefficient

Okeanis Eco  Hutchison Port

Very weak diversification

The 3 months correlation between Okeanis and Hutchison is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Okeanis Eco Tankers and Hutchison Port Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hutchison Port Holdings and Okeanis Eco 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 Okeanis Eco Tankers are associated (or correlated) with Hutchison Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hutchison Port Holdings has no effect on the direction of Okeanis Eco i.e., Okeanis Eco and Hutchison Port go up and down completely randomly.

Pair Corralation between Okeanis Eco and Hutchison Port

If you would invest  282.00  in Hutchison Port Holdings on October 7, 2024 and sell it today you would lose (10.00) from holding Hutchison Port Holdings or give up 3.55% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	0.4%
Values	Daily Returns

Okeanis Eco Tankers  vs.  Hutchison Port Holdings

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. Despite nearly stable basic indicators, Okeanis Eco is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Hutchison Port Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hutchison Port Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Okeanis Eco and Hutchison Port

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

The idea behind Okeanis Eco Tankers and Hutchison Port Holdings 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.