Correlation Between Bank of America and Seanergy Maritime
Can any of the company-specific risk be diversified away by investing in both Bank of America and Seanergy Maritime 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 Bank of America and Seanergy Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of America and Seanergy Maritime Holdings, you can compare the effects of market volatilities on Bank of America and Seanergy Maritime 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 Bank of America with a short position of Seanergy Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and Seanergy Maritime.
Diversification Opportunities for Bank of America and Seanergy Maritime
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Seanergy is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and Seanergy Maritime Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seanergy Maritime and Bank of America 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 Bank of America are associated (or correlated) with Seanergy Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seanergy Maritime has no effect on the direction of Bank of America i.e., Bank of America and Seanergy Maritime go up and down completely randomly.
Pair Corralation between Bank of America and Seanergy Maritime
Considering the 90-day investment horizon Bank of America is expected to generate 1.52 times less return on investment than Seanergy Maritime. But when comparing it to its historical volatility, Bank of America is 2.05 times less risky than Seanergy Maritime. It trades about 0.1 of its potential returns per unit of risk. Seanergy Maritime Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 409.00 in Seanergy Maritime Holdings on September 1, 2024 and sell it today you would earn a total of 399.00 from holding Seanergy Maritime Holdings or generate 97.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. Seanergy Maritime Holdings
Performance |
| Timeline |
| Bank of America |
| Seanergy Maritime |
Bank of America and Seanergy Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and Seanergy Maritime
The main advantage of trading using opposite Bank of America and Seanergy Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, Seanergy Maritime 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 Seanergy Maritime will offset losses from the drop in Seanergy Maritime's long position.| Bank of America vs. Citigroup | Bank of America vs. Toronto Dominion Bank | Bank of America vs. Royal Bank of | Bank of America vs. JPMorgan Chase Co |
| Seanergy Maritime vs. TOP Ships | Seanergy Maritime vs. Euroseas | Seanergy Maritime vs. Pyxis Tankers | Seanergy Maritime vs. Cool Company |
Check out your portfolio center.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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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