Correlation Between Oceanpal and Gex Management

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

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

Diversification Opportunities for Oceanpal and Gex Management

0.61

Correlation Coefficient

Oceanpal  Gex Management

Poor diversification

The 3 months correlation between Oceanpal and Gex is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Oceanpal and Gex Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gex Management and Oceanpal 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 Oceanpal are associated (or correlated) with Gex Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gex Management has no effect on the direction of Oceanpal i.e., Oceanpal and Gex Management go up and down completely randomly.

Pair Corralation between Oceanpal and Gex Management

If you would invest  0.04  in Gex Management on September 13, 2024 and sell it today you would earn a total of  0.00  from holding Gex Management or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.59%
Values	Daily Returns

Oceanpal  vs.  Gex Management

Oceanpal

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oceanpal has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest conflicting performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Gex Management

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gex Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Gex Management is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Oceanpal and Gex Management

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

The idea behind Oceanpal and Gex Management 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.