Correlation Between SEACOR Marine and Globus Maritime
Can any of the company-specific risk be diversified away by investing in both SEACOR Marine and Globus Maritime 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 Globus Maritime 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 Globus Maritime, you can compare the effects of market volatilities on SEACOR Marine and Globus Maritime 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 Globus Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEACOR Marine and Globus Maritime.
Diversification Opportunities for SEACOR Marine and Globus Maritime
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SEACOR and Globus is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding SEACOR Marine Holdings and Globus Maritime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globus Maritime 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 Globus Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globus Maritime has no effect on the direction of SEACOR Marine i.e., SEACOR Marine and Globus Maritime go up and down completely randomly.
Pair Corralation between SEACOR Marine and Globus Maritime
Given the investment horizon of 90 days SEACOR Marine is expected to generate 2.98 times less return on investment than Globus Maritime. But when comparing it to its historical volatility, SEACOR Marine Holdings is 1.19 times less risky than Globus Maritime. It trades about 0.1 of its potential returns per unit of risk. Globus Maritime is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 122.00 in Globus Maritime on November 2, 2024 and sell it today you would earn a total of 19.00 from holding Globus Maritime or generate 15.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEACOR Marine Holdings vs. Globus Maritime
Performance |
| Timeline |
| SEACOR Marine Holdings |
| Globus Maritime |
SEACOR Marine and Globus Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEACOR Marine and Globus Maritime
The main advantage of trading using opposite SEACOR Marine and Globus Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEACOR Marine position performs unexpectedly, Globus Maritime 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 Globus Maritime will offset losses from the drop in Globus Maritime's long position.| SEACOR Marine vs. Ranger Energy Services | SEACOR Marine vs. Emerald Expositions Events | SEACOR Marine vs. NCS Multistage Holdings | SEACOR Marine vs. Thermon Group Holdings |
| Globus Maritime vs. Seanergy Maritime Holdings | Globus Maritime vs. United Maritime | Globus Maritime vs. Performance Shipping | Globus Maritime vs. Castor Maritime |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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