Correlation Between Cool and Seanergy Maritime
Can any of the company-specific risk be diversified away by investing in both Cool 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 Cool and Seanergy Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cool Company and Seanergy Maritime Holdings, you can compare the effects of market volatilities on Cool 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 Cool with a short position of Seanergy Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cool and Seanergy Maritime.
Diversification Opportunities for Cool and Seanergy Maritime
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cool and Seanergy is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Cool Company and Seanergy Maritime Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seanergy Maritime and Cool 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 Cool Company 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 Cool i.e., Cool and Seanergy Maritime go up and down completely randomly.
Pair Corralation between Cool and Seanergy Maritime
Given the investment horizon of 90 days Cool Company is expected to generate 1.39 times more return on investment than Seanergy Maritime. However, Cool is 1.39 times more volatile than Seanergy Maritime Holdings. It trades about -0.05 of its potential returns per unit of risk. Seanergy Maritime Holdings is currently generating about -0.18 per unit of risk. If you would invest 981.00 in Cool Company on November 1, 2024 and sell it today you would lose (110.00) from holding Cool Company or give up 11.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cool Company vs. Seanergy Maritime Holdings
Performance |
| Timeline |
| Cool Company |
| Seanergy Maritime |
Cool and Seanergy Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cool and Seanergy Maritime
The main advantage of trading using opposite Cool and Seanergy Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cool 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.| Cool vs. Fair Isaac | Cool vs. Altair Engineering | Cool vs. Proficient Auto Logistics, | Cool vs. Mesa Air Group |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stocks Directory Find actively traded stocks across global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |