Correlation Between TNP Old and International Seaways

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

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

Diversification Opportunities for TNP Old and International Seaways

0.0

Correlation Coefficient

TNP Old  International Seaways

Pay attention - limited upside

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

Pair Corralation between TNP Old and International Seaways

If you would invest  2,928  in TNP Old on October 24, 2024 and sell it today you would earn a total of  0.00  from holding TNP Old or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

TNP Old  vs.  International Seaways

TNP Old

Risk-Adjusted Performance

0 of 100

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.

International Seaways

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days International Seaways has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with TNP Old and International Seaways

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

The idea behind TNP Old and International Seaways 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.