Correlation Between Globus Maritime and Seanergy Maritime
Can any of the company-specific risk be diversified away by investing in both Globus 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 Globus 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 Globus Maritime and Seanergy Maritime Holdings, you can compare the effects of market volatilities on Globus 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 Globus Maritime with a short position of Seanergy Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globus Maritime and Seanergy Maritime.
Diversification Opportunities for Globus Maritime and Seanergy Maritime
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Globus and Seanergy is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Globus 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 Globus 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 Globus 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 Globus Maritime i.e., Globus Maritime and Seanergy Maritime go up and down completely randomly.
Pair Corralation between Globus Maritime and Seanergy Maritime
Given the investment horizon of 90 days Globus Maritime is expected to generate 1.48 times more return on investment than Seanergy Maritime. However, Globus Maritime is 1.48 times more volatile than Seanergy Maritime Holdings. It trades about 0.24 of its potential returns per unit of risk. Seanergy Maritime Holdings is currently generating about -0.02 per unit of risk. If you would invest 122.00 in Globus Maritime on November 2, 2024 and sell it today you would earn a total of 19.00 from holding Globus Maritime or generate 15.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globus Maritime vs. Seanergy Maritime Holdings
Performance |
| Timeline |
| Globus Maritime |
| Seanergy Maritime |
Globus Maritime and Seanergy Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globus Maritime and Seanergy Maritime
The main advantage of trading using opposite Globus Maritime and Seanergy Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globus 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.| Globus Maritime vs. Seanergy Maritime Holdings | Globus Maritime vs. United Maritime | Globus Maritime vs. Performance Shipping | Globus Maritime vs. Castor Maritime |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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