Correlation Between Safe Bulkers and SEACOR Marine
Can any of the company-specific risk be diversified away by investing in both Safe Bulkers and SEACOR Marine 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 Safe Bulkers and SEACOR Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safe Bulkers and SEACOR Marine Holdings, you can compare the effects of market volatilities on Safe Bulkers and SEACOR Marine 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 Safe Bulkers with a short position of SEACOR Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safe Bulkers and SEACOR Marine.
Diversification Opportunities for Safe Bulkers and SEACOR Marine
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Safe and SEACOR is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Safe Bulkers and SEACOR Marine Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEACOR Marine Holdings and Safe Bulkers 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 Safe Bulkers are associated (or correlated) with SEACOR Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEACOR Marine Holdings has no effect on the direction of Safe Bulkers i.e., Safe Bulkers and SEACOR Marine go up and down completely randomly.
Pair Corralation between Safe Bulkers and SEACOR Marine
Assuming the 90 days horizon Safe Bulkers is expected to generate 0.09 times more return on investment than SEACOR Marine. However, Safe Bulkers is 11.06 times less risky than SEACOR Marine. It trades about -0.03 of its potential returns per unit of risk. SEACOR Marine Holdings is currently generating about -0.14 per unit of risk. If you would invest 2,559 in Safe Bulkers on August 28, 2024 and sell it today you would lose (8.00) from holding Safe Bulkers or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safe Bulkers vs. SEACOR Marine Holdings
Performance |
| Timeline |
| Safe Bulkers |
| SEACOR Marine Holdings |
Safe Bulkers and SEACOR Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safe Bulkers and SEACOR Marine
The main advantage of trading using opposite Safe Bulkers and SEACOR Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safe Bulkers position performs unexpectedly, SEACOR Marine 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 SEACOR Marine will offset losses from the drop in SEACOR Marine's long position.| Safe Bulkers vs. Safe Bulkers | Safe Bulkers vs. Global Ship Lease | Safe Bulkers vs. Diana Shipping | Safe Bulkers vs. Costamare |
| SEACOR Marine vs. Ranger Energy Services | SEACOR Marine vs. Emerald Expositions Events | SEACOR Marine vs. NCS Multistage Holdings | SEACOR Marine vs. Thermon Group Holdings |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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