Trading Strategies in the Market for Tankers

A new approach in timing the sale and purchase of ships in the tanker market is introduced in this paper, which examines the performance of this strategy over the period from January 1976 to September 2004. Based on the long-run cointegration relationship between earnings and price, a trading model is established which can be used as an indicator of investment or divestment timing decisions. Statistical tests using the bootstrap approach are used to discount the possibility of data snooping biases and to test the robustness of the trading model. Results indicate that trading strategies based on earning-price ratios significantly outperform buy and hold strategies in the tanker market.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/2899960
• Authors:
  • Alizadeh, Amir H
  • Nomikos, Nikos K
• Publication Date: 2006-5

Language

• English

Media Info

• Media Type: Print
• Features: Appendices; Figures; References; Tables;
• Pagination: pp 119-140
• Serial:
  • Maritime Policy & Management
  • Volume: 33
  • Issue Number: 2
  • Publisher: Taylor & Francis
  • ISSN: 0308-8839
  • EISSN: 1464-5254
  • Serial URL: http://www.tandfonline.com/loi/tmpm20

Subject/Index Terms

• TRT Terms: Cargo ships; Decision making; Economic models; Finance; Fleet management; Investments; Purchasing; Ships; Strategic planning; Tankers
• Uncontrolled Terms: Holding strategies; Major investment studies; Open market trading; Timing
• Subject Areas: Administration and Management; Economics; Finance; Freight Transportation; Marine Transportation; Vehicles and Equipment;

Filing Info

• Accession Number: 01029771
• Record Type: Publication
• Files: TRIS
• Created Date: Jul 27 2006 9:42AM