Correlation Between Tsakos Energy and VirnetX Holding

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

By analyzing existing cross correlation between Tsakos Energy Navigation and VirnetX Holding Corp, you can compare the effects of market volatilities on Tsakos Energy and VirnetX Holding 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 Tsakos Energy with a short position of VirnetX Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsakos Energy and VirnetX Holding.

Diversification Opportunities for Tsakos Energy and VirnetX Holding

0.81

Correlation Coefficient

Tsakos Energy  VirnetX Holding

Very poor diversification

The 3 months correlation between Tsakos and VirnetX is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Tsakos Energy Navigation and VirnetX Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VirnetX Holding Corp and Tsakos Energy 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 Tsakos Energy Navigation are associated (or correlated) with VirnetX Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VirnetX Holding Corp has no effect on the direction of Tsakos Energy i.e., Tsakos Energy and VirnetX Holding go up and down completely randomly.

Pair Corralation between Tsakos Energy and VirnetX Holding

Considering the 90-day investment horizon Tsakos Energy is expected to generate 2.57 times less return on investment than VirnetX Holding. But when comparing it to its historical volatility, Tsakos Energy Navigation is 5.87 times less risky than VirnetX Holding. It trades about 0.41 of its potential returns per unit of risk. VirnetX Holding Corp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  1,700  in VirnetX Holding Corp on August 17, 2025 and sell it today you would earn a total of  615.00  from holding VirnetX Holding Corp or generate 36.18% return on investment over 90 days.

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

Tsakos Energy Navigation  vs.  VirnetX Holding Corp

Tsakos Energy Navigation

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tsakos Energy Navigation are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, Tsakos Energy displayed solid returns over the last few months and may actually be approaching a breakup point.

VirnetX Holding Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VirnetX Holding Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical indicators, VirnetX Holding exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tsakos Energy and VirnetX Holding

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

The idea behind Tsakos Energy Navigation and VirnetX Holding Corp 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.