Correlation Between KNOT Offshore and Seanergy Maritime
Can any of the company-specific risk be diversified away by investing in both KNOT Offshore 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 KNOT Offshore and Seanergy Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KNOT Offshore Partners and Seanergy Maritime Holdings, you can compare the effects of market volatilities on KNOT Offshore 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 KNOT Offshore with a short position of Seanergy Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNOT Offshore and Seanergy Maritime.
Diversification Opportunities for KNOT Offshore and Seanergy Maritime
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KNOT and Seanergy is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding KNOT Offshore Partners and Seanergy Maritime Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seanergy Maritime and KNOT Offshore 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 KNOT Offshore Partners 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 KNOT Offshore i.e., KNOT Offshore and Seanergy Maritime go up and down completely randomly.
Pair Corralation between KNOT Offshore and Seanergy Maritime
Given the investment horizon of 90 days KNOT Offshore Partners is expected to generate 0.89 times more return on investment than Seanergy Maritime. However, KNOT Offshore Partners is 1.13 times less risky than Seanergy Maritime. It trades about -0.09 of its potential returns per unit of risk. Seanergy Maritime Holdings is currently generating about -0.17 per unit of risk. If you would invest 697.00 in KNOT Offshore Partners on August 28, 2024 and sell it today you would lose (95.00) from holding KNOT Offshore Partners or give up 13.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KNOT Offshore Partners vs. Seanergy Maritime Holdings
Performance |
| Timeline |
| KNOT Offshore Partners |
| Seanergy Maritime |
KNOT Offshore and Seanergy Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KNOT Offshore and Seanergy Maritime
The main advantage of trading using opposite KNOT Offshore and Seanergy Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNOT Offshore 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.| KNOT Offshore vs. USA Compression Partners | KNOT Offshore vs. Dynagas LNG Partners | KNOT Offshore vs. Crossamerica Partners LP | KNOT Offshore vs. Delek Logistics Partners |
| 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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