Correlation Between Seanergy Maritime and Diana Shipping

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Can any of the company-specific risk be diversified away by investing in both Seanergy Maritime and Diana Shipping 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 Seanergy Maritime and Diana Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seanergy Maritime Holdings and Diana Shipping, you can compare the effects of market volatilities on Seanergy Maritime and Diana Shipping 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 Seanergy Maritime with a short position of Diana Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seanergy Maritime and Diana Shipping.

Diversification Opportunities for Seanergy Maritime and Diana Shipping

SeanergyDianaDiversified AwaySeanergyDianaDiversified Away100%
0.72
  Correlation Coefficient

Poor diversification

The 3 months correlation between Seanergy and Diana is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Seanergy Maritime Holdings and Diana Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diana Shipping and Seanergy 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 Seanergy Maritime Holdings are associated (or correlated) with Diana Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diana Shipping has no effect on the direction of Seanergy Maritime i.e., Seanergy Maritime and Diana Shipping go up and down completely randomly.

Pair Corralation between Seanergy Maritime and Diana Shipping

Given the investment horizon of 90 days Seanergy Maritime is expected to generate 3.81 times less return on investment than Diana Shipping. In addition to that, Seanergy Maritime is 1.11 times more volatile than Diana Shipping. It trades about 0.01 of its total potential returns per unit of risk. Diana Shipping is currently generating about 0.06 per unit of volatility. If you would invest  178.00  in Diana Shipping on November 25, 2024 and sell it today you would earn a total of  4.00  from holding Diana Shipping or generate 2.25% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Seanergy Maritime Holdings  vs.  Diana Shipping

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -25-20-15-10-5
JavaScript chart by amCharts 3.21.15SHIP DSX
       Timeline  
Seanergy Maritime 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Seanergy Maritime Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's forward indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb77.58
Diana Shipping 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Diana Shipping has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Diana Shipping is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.751.81.851.91.9522.052.1

Seanergy Maritime and Diana Shipping Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.56-2.67-1.77-0.880.01280.771.542.313.08 0.050.060.070.080.09
JavaScript chart by amCharts 3.21.15SHIP DSX
       Returns  

Pair Trading with Seanergy Maritime and Diana Shipping

The main advantage of trading using opposite Seanergy Maritime and Diana Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seanergy Maritime position performs unexpectedly, Diana Shipping 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 Diana Shipping will offset losses from the drop in Diana Shipping's long position.
The idea behind Seanergy Maritime Holdings and Diana Shipping pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

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