Correlation Between SEACOR Marine and Caravelle International
Can any of the company-specific risk be diversified away by investing in both SEACOR Marine and Caravelle International 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 Caravelle International 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 Caravelle International Group, you can compare the effects of market volatilities on SEACOR Marine and Caravelle International 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 Caravelle International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEACOR Marine and Caravelle International.
Diversification Opportunities for SEACOR Marine and Caravelle International
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SEACOR and Caravelle is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding SEACOR Marine Holdings and Caravelle International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caravelle International 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 Caravelle International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caravelle International has no effect on the direction of SEACOR Marine i.e., SEACOR Marine and Caravelle International go up and down completely randomly.
Pair Corralation between SEACOR Marine and Caravelle International
Given the investment horizon of 90 days SEACOR Marine Holdings is expected to under-perform the Caravelle International. But the stock apears to be less risky and, when comparing its historical volatility, SEACOR Marine Holdings is 1.1 times less risky than Caravelle International. The stock trades about -0.14 of its potential returns per unit of risk. The Caravelle International Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 112.00 in Caravelle International Group on August 24, 2024 and sell it today you would earn a total of 9.00 from holding Caravelle International Group or generate 8.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEACOR Marine Holdings vs. Caravelle International Group
Performance |
| Timeline |
| SEACOR Marine Holdings |
| Caravelle International |
SEACOR Marine and Caravelle International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEACOR Marine and Caravelle International
The main advantage of trading using opposite SEACOR Marine and Caravelle International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEACOR Marine position performs unexpectedly, Caravelle International 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 Caravelle International will offset losses from the drop in Caravelle International'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 |
| Caravelle International vs. Oceanpal | Caravelle International vs. Safe Bulkers | Caravelle International vs. Safe Bulkers | Caravelle International vs. Safe Bulkers |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |