Correlation Between TNP Old and FLEX LNG

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

By analyzing existing cross correlation between TNP Old and FLEX LNG, you can compare the effects of market volatilities on TNP Old and FLEX LNG 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 TNP Old with a short position of FLEX LNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of TNP Old and FLEX LNG.

Diversification Opportunities for TNP Old and FLEX LNG

0.0

Correlation Coefficient

TNP Old  FLEX LNG

Pay attention - limited upside

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

Pair Corralation between TNP Old and FLEX LNG

If you would invest  2,154  in FLEX LNG on December 30, 2024 and sell it today you would earn a total of  148.00  from holding FLEX LNG or generate 6.87% return on investment over 90 days.

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

TNP Old  vs.  FLEX LNG

TNP Old

Risk-Adjusted Performance

Very Weak

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

FLEX LNG

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in FLEX LNG are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, FLEX LNG may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with TNP Old and FLEX LNG

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

The idea behind TNP Old and FLEX LNG 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.