Correlation Between Seanergy Maritime and Oceanpal
Can any of the company-specific risk be diversified away by investing in both Seanergy Maritime and Oceanpal 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 Oceanpal 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 Oceanpal, you can compare the effects of market volatilities on Seanergy Maritime and Oceanpal 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 Oceanpal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seanergy Maritime and Oceanpal.
Diversification Opportunities for Seanergy Maritime and Oceanpal
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Seanergy and Oceanpal is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Seanergy Maritime Holdings and Oceanpal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oceanpal 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 Oceanpal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oceanpal has no effect on the direction of Seanergy Maritime i.e., Seanergy Maritime and Oceanpal go up and down completely randomly.
Pair Corralation between Seanergy Maritime and Oceanpal
Given the investment horizon of 90 days Seanergy Maritime Holdings is expected to under-perform the Oceanpal. But the stock apears to be less risky and, when comparing its historical volatility, Seanergy Maritime Holdings is 1.19 times less risky than Oceanpal. The stock trades about -0.18 of its potential returns per unit of risk. The Oceanpal is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 156.00 in Oceanpal on August 31, 2024 and sell it today you would lose (15.00) from holding Oceanpal or give up 9.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seanergy Maritime Holdings vs. Oceanpal
Performance |
| Timeline |
| Seanergy Maritime |
| Oceanpal |
Seanergy Maritime and Oceanpal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seanergy Maritime and Oceanpal
The main advantage of trading using opposite Seanergy Maritime and Oceanpal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seanergy Maritime position performs unexpectedly, Oceanpal 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 Oceanpal will offset losses from the drop in Oceanpal's long position.| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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