Correlation Between Costamare and Seanergy Maritime
Can any of the company-specific risk be diversified away by investing in both Costamare 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 Costamare and Seanergy Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Costamare and Seanergy Maritime Holdings, you can compare the effects of market volatilities on Costamare 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 Costamare with a short position of Seanergy Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Costamare and Seanergy Maritime.
Diversification Opportunities for Costamare and Seanergy Maritime
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Costamare and Seanergy is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Costamare and Seanergy Maritime Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seanergy Maritime and Costamare 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 Costamare 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 Costamare i.e., Costamare and Seanergy Maritime go up and down completely randomly.
Pair Corralation between Costamare and Seanergy Maritime
Given the investment horizon of 90 days Costamare is expected to generate 1.01 times less return on investment than Seanergy Maritime. But when comparing it to its historical volatility, Costamare is 1.42 times less risky than Seanergy Maritime. It trades about 0.01 of its potential returns per unit of risk. Seanergy Maritime Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 689.00 in Seanergy Maritime Holdings on November 9, 2024 and sell it today you would lose (24.00) from holding Seanergy Maritime Holdings or give up 3.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Costamare vs. Seanergy Maritime Holdings
Performance |
| Timeline |
| Costamare |
| Seanergy Maritime |
Costamare and Seanergy Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Costamare and Seanergy Maritime
The main advantage of trading using opposite Costamare and Seanergy Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Costamare 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.| Costamare vs. Global Ship Lease | Costamare vs. Navios Maritime Partners | Costamare vs. Genco Shipping Trading | Costamare vs. Danaos |
| 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |