Correlation Between SEACOR Marine and International Seaways
Can any of the company-specific risk be diversified away by investing in both SEACOR Marine and International Seaways 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 International Seaways 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 International Seaways, you can compare the effects of market volatilities on SEACOR Marine and International Seaways 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 International Seaways. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEACOR Marine and International Seaways.
Diversification Opportunities for SEACOR Marine and International Seaways
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SEACOR and International is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding SEACOR Marine Holdings and International Seaways in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Seaways 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 International Seaways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Seaways has no effect on the direction of SEACOR Marine i.e., SEACOR Marine and International Seaways go up and down completely randomly.
Pair Corralation between SEACOR Marine and International Seaways
Given the investment horizon of 90 days SEACOR Marine is expected to generate 4.79 times less return on investment than International Seaways. In addition to that, SEACOR Marine is 1.48 times more volatile than International Seaways. It trades about 0.0 of its total potential returns per unit of risk. International Seaways is currently generating about 0.03 per unit of volatility. If you would invest 3,042 in International Seaways on September 4, 2024 and sell it today you would earn a total of 783.00 from holding International Seaways or generate 25.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEACOR Marine Holdings vs. International Seaways
Performance |
| Timeline |
| SEACOR Marine Holdings |
| International Seaways |
SEACOR Marine and International Seaways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEACOR Marine and International Seaways
The main advantage of trading using opposite SEACOR Marine and International Seaways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEACOR Marine position performs unexpectedly, International Seaways 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 International Seaways will offset losses from the drop in International Seaways' 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 |
| International Seaways vs. EnLink Midstream LLC | International Seaways vs. Western Midstream Partners | International Seaways vs. Plains GP Holdings | International Seaways vs. Hess Midstream Partners |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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