Correlation Between Ballard Power and Okeanis Eco

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Can any of the company-specific risk be diversified away by investing in both Ballard Power 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 Ballard Power and Okeanis Eco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ballard Power Systems and Okeanis Eco Tankers, you can compare the effects of market volatilities on Ballard Power 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 Ballard Power with a short position of Okeanis Eco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ballard Power and Okeanis Eco.

Diversification Opportunities for Ballard Power and Okeanis Eco

0.21
  Correlation Coefficient

Modest diversification

The 3 months correlation between Ballard and Okeanis is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ballard Power Systems 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 Ballard Power 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 Ballard Power Systems 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 Ballard Power i.e., Ballard Power and Okeanis Eco go up and down completely randomly.

Pair Corralation between Ballard Power and Okeanis Eco

Given the investment horizon of 90 days Ballard Power Systems is expected to generate 2.29 times more return on investment than Okeanis Eco. However, Ballard Power is 2.29 times more volatile than Okeanis Eco Tankers. It trades about 0.11 of its potential returns per unit of risk. Okeanis Eco Tankers is currently generating about 0.19 per unit of risk. If you would invest  199.00  in Ballard Power Systems on September 5, 2025 and sell it today you would earn a total of  68.00  from holding Ballard Power Systems or generate 34.17% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Ballard Power Systems  vs.  Okeanis Eco Tankers

 Performance 
       Timeline  
Ballard Power Systems 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Ballard Power Systems are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady fundamental indicators, Ballard Power reported solid returns over the last few months and may actually be approaching a breakup point.
Okeanis Eco Tankers 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Okeanis Eco Tankers are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile fundamental indicators, Okeanis Eco displayed solid returns over the last few months and may actually be approaching a breakup point.

Ballard Power and Okeanis Eco Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ballard Power and Okeanis Eco

The main advantage of trading using opposite Ballard Power and Okeanis Eco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ballard Power 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 Ballard Power Systems 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.
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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