Correlation Between ZIM Integrated and Okeanis Eco

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

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

Diversification Opportunities for ZIM Integrated and Okeanis Eco

-0.39

Correlation Coefficient

ZIM Integrated  Okeanis Eco

Very good diversification

The 3 months correlation between ZIM and Okeanis is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding ZIM Integrated Shipping 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 ZIM Integrated 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 ZIM Integrated Shipping 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 ZIM Integrated i.e., ZIM Integrated and Okeanis Eco go up and down completely randomly.

Pair Corralation between ZIM Integrated and Okeanis Eco

Considering the 90-day investment horizon ZIM Integrated Shipping is expected to under-perform the Okeanis Eco. In addition to that, ZIM Integrated is 1.13 times more volatile than Okeanis Eco Tankers. It trades about -0.07 of its total potential returns per unit of risk. Okeanis Eco Tankers is currently generating about 0.05 per unit of volatility. If you would invest  2,121  in Okeanis Eco Tankers on December 24, 2024 and sell it today you would earn a total of  148.00  from holding Okeanis Eco Tankers or generate 6.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ZIM Integrated Shipping  vs.  Okeanis Eco Tankers

ZIM Integrated Shipping

Risk-Adjusted Performance

Very Weak

Over the last 90 days ZIM Integrated Shipping 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 forward indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Okeanis Eco Tankers

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Okeanis Eco Tankers are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Okeanis Eco may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with ZIM Integrated and Okeanis Eco

The main advantage of trading using opposite ZIM Integrated and Okeanis Eco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZIM Integrated 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 ZIM Integrated Shipping 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.

Check out your portfolio center.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.