Correlation Between Tsakos Energy and Zhihu

Can any of the company-specific risk be diversified away by investing in both Tsakos Energy and Zhihu 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 Zhihu 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 Zhihu Inc ADR, you can compare the effects of market volatilities on Tsakos Energy and Zhihu 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 Zhihu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsakos Energy and Zhihu.

Diversification Opportunities for Tsakos Energy and Zhihu

0.45

Correlation Coefficient

Tsakos Energy  Zhihu

Very weak diversification

The 3 months correlation between Tsakos and Zhihu is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Tsakos Energy Navigation and Zhihu Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhihu Inc ADR 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 Zhihu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhihu Inc ADR has no effect on the direction of Tsakos Energy i.e., Tsakos Energy and Zhihu go up and down completely randomly.

Pair Corralation between Tsakos Energy and Zhihu

Considering the 90-day investment horizon Tsakos Energy Navigation is expected to generate 0.91 times more return on investment than Zhihu. However, Tsakos Energy Navigation is 1.09 times less risky than Zhihu. It trades about 0.1 of its potential returns per unit of risk. Zhihu Inc ADR is currently generating about 0.02 per unit of risk. If you would invest  1,695  in Tsakos Energy Navigation on May 6, 2025 and sell it today you would earn a total of  250.00  from holding Tsakos Energy Navigation or generate 14.75% return on investment over 90 days.

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

Tsakos Energy Navigation  vs.  Zhihu Inc ADR

Tsakos Energy Navigation

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tsakos Energy Navigation are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal technical and fundamental indicators, Tsakos Energy displayed solid returns over the last few months and may actually be approaching a breakup point.

Zhihu Inc ADR

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Zhihu Inc ADR are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical indicators, Zhihu is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Tsakos Energy and Zhihu

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

The idea behind Tsakos Energy Navigation and Zhihu Inc ADR 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.