Correlation Between Seanergy Maritime and SEACOR Marine
Can any of the company-specific risk be diversified away by investing in both Seanergy Maritime 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 Seanergy Maritime and SEACOR Marine 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 SEACOR Marine Holdings, you can compare the effects of market volatilities on Seanergy Maritime 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 Seanergy Maritime with a short position of SEACOR Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seanergy Maritime and SEACOR Marine.
Diversification Opportunities for Seanergy Maritime and SEACOR Marine
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Seanergy and SEACOR is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Seanergy Maritime Holdings 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 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 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 Seanergy Maritime i.e., Seanergy Maritime and SEACOR Marine go up and down completely randomly.
Pair Corralation between Seanergy Maritime and SEACOR Marine
Given the investment horizon of 90 days Seanergy Maritime Holdings is expected to generate 0.36 times more return on investment than SEACOR Marine. However, Seanergy Maritime Holdings is 2.8 times less risky than SEACOR Marine. It trades about -0.36 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 962.00 in Seanergy Maritime Holdings on August 28, 2024 and sell it today you would lose (147.00) from holding Seanergy Maritime Holdings or give up 15.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seanergy Maritime Holdings vs. SEACOR Marine Holdings
Performance |
| Timeline |
| Seanergy Maritime |
| SEACOR Marine Holdings |
Seanergy Maritime and SEACOR Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seanergy Maritime and SEACOR Marine
The main advantage of trading using opposite Seanergy Maritime and SEACOR Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seanergy Maritime 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.| Seanergy Maritime vs. TOP Ships | Seanergy Maritime vs. Euroseas | Seanergy Maritime vs. Pyxis Tankers | Seanergy Maritime vs. Cool Company |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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