Correlation Between SEACOR Marine and Capital Clean
Can any of the company-specific risk be diversified away by investing in both SEACOR Marine and Capital Clean 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 SEACOR Marine and Capital Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEACOR Marine Holdings and Capital Clean Energy, you can compare the effects of market volatilities on SEACOR Marine and Capital Clean 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 SEACOR Marine with a short position of Capital Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEACOR Marine and Capital Clean.
Diversification Opportunities for SEACOR Marine and Capital Clean
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SEACOR and Capital is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding SEACOR Marine Holdings and Capital Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Clean Energy and SEACOR Marine 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 SEACOR Marine Holdings are associated (or correlated) with Capital Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Clean Energy has no effect on the direction of SEACOR Marine i.e., SEACOR Marine and Capital Clean go up and down completely randomly.
Pair Corralation between SEACOR Marine and Capital Clean
Given the investment horizon of 90 days SEACOR Marine Holdings is expected to under-perform the Capital Clean. In addition to that, SEACOR Marine is 1.81 times more volatile than Capital Clean Energy. It trades about -0.15 of its total potential returns per unit of risk. Capital Clean Energy is currently generating about 0.06 per unit of volatility. If you would invest 1,718 in Capital Clean Energy on August 31, 2024 and sell it today you would earn a total of 116.00 from holding Capital Clean Energy or generate 6.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEACOR Marine Holdings vs. Capital Clean Energy
Performance |
| Timeline |
| SEACOR Marine Holdings |
| Capital Clean Energy |
SEACOR Marine and Capital Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEACOR Marine and Capital Clean
The main advantage of trading using opposite SEACOR Marine and Capital Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEACOR Marine position performs unexpectedly, Capital Clean 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 Capital Clean will offset losses from the drop in Capital Clean's long position.| SEACOR Marine vs. Oceanpal | SEACOR Marine vs. Safe Bulkers | SEACOR Marine vs. Safe Bulkers | SEACOR Marine vs. Safe Bulkers |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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