Correlation Between Seanergy Maritime and Diana Shipping
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
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Seanergy and Diana is 0.9. 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 Holdings is expected to generate 0.63 times more return on investment than Diana Shipping. However, Seanergy Maritime Holdings is 1.59 times less risky than Diana Shipping. It trades about -0.37 of its potential returns per unit of risk. Diana Shipping is currently generating about -0.32 per unit of risk. If you would invest 970.00 in Seanergy Maritime Holdings on August 30, 2024 and sell it today you would lose (157.00) from holding Seanergy Maritime Holdings or give up 16.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seanergy Maritime Holdings vs. Diana Shipping
Performance |
| Timeline |
| Seanergy Maritime |
| Diana Shipping |
Seanergy Maritime and Diana Shipping Volatility Contrast
Predicted Return Density |
| 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.| Seanergy Maritime vs. TOP Ships | Seanergy Maritime vs. Euroseas | Seanergy Maritime vs. Pyxis Tankers | Seanergy Maritime vs. Cool Company |
| Diana Shipping vs. Star Bulk Carriers | Diana Shipping vs. Golden Ocean Group | Diana Shipping vs. Global Ship Lease | Diana Shipping vs. Genco Shipping Trading |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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