Correlation Between Oceaneering International and General American

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

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

Diversification Opportunities for Oceaneering International and General American

0.86

Correlation Coefficient

Oceaneering International  General American

Very poor diversification

The 3 months correlation between Oceaneering and General is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Oceaneering International and General American Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General American Inv and Oceaneering 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 Oceaneering International are associated (or correlated) with General American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General American Inv has no effect on the direction of Oceaneering International i.e., Oceaneering International and General American go up and down completely randomly.

Pair Corralation between Oceaneering International and General American

Considering the 90-day investment horizon Oceaneering International is expected to generate 3.9 times more return on investment than General American. However, Oceaneering International is 3.9 times more volatile than General American Investors. It trades about 0.14 of its potential returns per unit of risk. General American Investors is currently generating about 0.3 per unit of risk. If you would invest  1,865  in Oceaneering International on May 1, 2025 and sell it today you would earn a total of  373.00  from holding Oceaneering International or generate 20.0% return on investment over 90 days.

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

Oceaneering International  vs.  General American Investors

Oceaneering International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Oceaneering International are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Oceaneering International demonstrated solid returns over the last few months and may actually be approaching a breakup point.

General American Inv

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in General American Investors are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, General American may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Oceaneering International and General American

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

The idea behind Oceaneering International and General American Investors 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.