Correlation Between ZIM Integrated and Seanergy Maritime
Can any of the company-specific risk be diversified away by investing in both ZIM Integrated and Seanergy 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 ZIM Integrated and Seanergy Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZIM Integrated Shipping and Seanergy Maritime Holdings, you can compare the effects of market volatilities on ZIM Integrated and Seanergy 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 ZIM Integrated with a short position of Seanergy Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZIM Integrated and Seanergy Maritime.
Diversification Opportunities for ZIM Integrated and Seanergy Maritime
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ZIM and Seanergy is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding ZIM Integrated Shipping and Seanergy Maritime Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seanergy Maritime and ZIM Integrated 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 ZIM Integrated Shipping are associated (or correlated) with Seanergy Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seanergy Maritime has no effect on the direction of ZIM Integrated i.e., ZIM Integrated and Seanergy Maritime go up and down completely randomly.
Pair Corralation between ZIM Integrated and Seanergy Maritime
Considering the 90-day investment horizon ZIM Integrated Shipping is expected to generate 1.46 times more return on investment than Seanergy Maritime. However, ZIM Integrated is 1.46 times more volatile than Seanergy Maritime Holdings. It trades about 0.33 of its potential returns per unit of risk. Seanergy Maritime Holdings is currently generating about -0.05 per unit of risk. If you would invest 1,772 in ZIM Integrated Shipping on November 28, 2024 and sell it today you would earn a total of 450.00 from holding ZIM Integrated Shipping or generate 25.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ZIM Integrated Shipping vs. Seanergy Maritime Holdings
Performance |
| Timeline |
| ZIM Integrated Shipping |
| Seanergy Maritime |
ZIM Integrated and Seanergy Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZIM Integrated and Seanergy Maritime
The main advantage of trading using opposite ZIM Integrated and Seanergy Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZIM Integrated position performs unexpectedly, Seanergy 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 Seanergy Maritime will offset losses from the drop in Seanergy Maritime's long position.| ZIM Integrated vs. Golden Ocean Group | ZIM Integrated vs. Genco Shipping Trading | ZIM Integrated vs. Global Ship Lease | ZIM Integrated vs. Diana Shipping |
| Seanergy Maritime vs. TOP Ships | Seanergy Maritime vs. Euroseas | Seanergy Maritime vs. Pyxis Tankers | Seanergy Maritime vs. Cool Company |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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