Correlation Between SITC International and Okeanis Eco
Can any of the company-specific risk be diversified away by investing in both SITC International 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 SITC International and Okeanis Eco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SITC International Holdings and Okeanis Eco Tankers, you can compare the effects of market volatilities on SITC International 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 SITC International with a short position of Okeanis Eco. Check out your portfolio center. Please also check ongoing floating volatility patterns of SITC International and Okeanis Eco.
Diversification Opportunities for SITC International and Okeanis Eco
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SITC and Okeanis is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding SITC International Holdings 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 SITC International 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 SITC International Holdings 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 SITC International i.e., SITC International and Okeanis Eco go up and down completely randomly.
Pair Corralation between SITC International and Okeanis Eco
If you would invest 227.00 in SITC International Holdings on September 15, 2024 and sell it today you would earn a total of 24.00 from holding SITC International Holdings or generate 10.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 1.56% |
Values | Daily Returns |
SITC International Holdings vs. Okeanis Eco Tankers
Performance |
Timeline |
SITC International |
Okeanis Eco Tankers |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SITC International and Okeanis Eco Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SITC International and Okeanis Eco
The main advantage of trading using opposite SITC International and Okeanis Eco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SITC International 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.SITC International vs. Hapag Lloyd Aktiengesellschaft | SITC International vs. Nippon Yusen Kabushiki | SITC International vs. COSCO SHIPPING Holdings | SITC International vs. AP Moeller |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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