Correlation Between Castor Maritime and Seanergy Maritime
Can any of the company-specific risk be diversified away by investing in both Castor Maritime 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 Castor Maritime and Seanergy Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Castor Maritime and Seanergy Maritime Holdings, you can compare the effects of market volatilities on Castor Maritime 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 Castor Maritime with a short position of Seanergy Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castor Maritime and Seanergy Maritime.
Diversification Opportunities for Castor Maritime and Seanergy Maritime
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Castor and Seanergy is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Castor Maritime and Seanergy Maritime Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seanergy Maritime and Castor Maritime 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 Castor Maritime 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 Castor Maritime i.e., Castor Maritime and Seanergy Maritime go up and down completely randomly.
Pair Corralation between Castor Maritime and Seanergy Maritime
Given the investment horizon of 90 days Castor Maritime is expected to generate 2.21 times less return on investment than Seanergy Maritime. In addition to that, Castor Maritime is 1.74 times more volatile than Seanergy Maritime Holdings. It trades about 0.01 of its total potential returns per unit of risk. Seanergy Maritime Holdings is currently generating about 0.05 per unit of volatility. If you would invest 507.00 in Seanergy Maritime Holdings on August 28, 2024 and sell it today you would earn a total of 308.00 from holding Seanergy Maritime Holdings or generate 60.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Castor Maritime vs. Seanergy Maritime Holdings
Performance |
| Timeline |
| Castor Maritime |
| Seanergy Maritime |
Castor Maritime and Seanergy Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Castor Maritime and Seanergy Maritime
The main advantage of trading using opposite Castor Maritime and Seanergy Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castor Maritime 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.| Castor Maritime vs. Seanergy Maritime Holdings | Castor Maritime vs. TOP Ships | Castor Maritime vs. United Maritime | Castor Maritime vs. Nordic American Tankers |
| 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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