Correlation Between Okeanis Eco and Kawasaki Kisen
Can any of the company-specific risk be diversified away by investing in both Okeanis Eco and Kawasaki Kisen 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 Kawasaki Kisen 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 Kawasaki Kisen Kaisha, you can compare the effects of market volatilities on Okeanis Eco and Kawasaki Kisen 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 Kawasaki Kisen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okeanis Eco and Kawasaki Kisen.
Diversification Opportunities for Okeanis Eco and Kawasaki Kisen
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Okeanis and Kawasaki is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Okeanis Eco Tankers and Kawasaki Kisen Kaisha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kawasaki Kisen Kaisha 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 Kawasaki Kisen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kawasaki Kisen Kaisha has no effect on the direction of Okeanis Eco i.e., Okeanis Eco and Kawasaki Kisen go up and down completely randomly.
Pair Corralation between Okeanis Eco and Kawasaki Kisen
If you would invest 2,255 in Okeanis Eco Tankers on September 15, 2024 and sell it today you would earn a total of 0.00 from holding Okeanis Eco Tankers or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 1.56% |
Values | Daily Returns |
Okeanis Eco Tankers vs. Kawasaki Kisen Kaisha
Performance |
Timeline |
Okeanis Eco Tankers |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kawasaki Kisen Kaisha |
Okeanis Eco and Kawasaki Kisen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Okeanis Eco and Kawasaki Kisen
The main advantage of trading using opposite Okeanis Eco and Kawasaki Kisen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okeanis Eco position performs unexpectedly, Kawasaki Kisen 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 Kawasaki Kisen will offset losses from the drop in Kawasaki Kisen's long position.Okeanis Eco vs. MPC Container Ships | Okeanis Eco vs. ZIM Integrated Shipping | Okeanis Eco vs. Hutchison Port Holdings | Okeanis Eco vs. Mitsui OSK Lines |
Kawasaki Kisen vs. Hapag Lloyd Aktiengesellschaft | Kawasaki Kisen vs. Nippon Yusen Kabushiki | Kawasaki Kisen vs. COSCO SHIPPING Holdings | Kawasaki Kisen vs. AP Moeller |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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