Correlation Between Air Lease and Seanergy Maritime

Can any of the company-specific risk be diversified away by investing in both Air Lease 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 Air Lease and Seanergy Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Air Lease and Seanergy Maritime Holdings, you can compare the effects of market volatilities on Air Lease 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 Air Lease with a short position of Seanergy Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Seanergy Maritime.

Diversification Opportunities for Air Lease and Seanergy Maritime

-0.67

Correlation Coefficient

Air Lease  Seanergy Maritime

Excellent diversification

The 3 months correlation between Air and Seanergy is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Seanergy Maritime Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seanergy Maritime and Air Lease 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 Air Lease 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 Air Lease i.e., Air Lease and Seanergy Maritime go up and down completely randomly.

Pair Corralation between Air Lease and Seanergy Maritime

Allowing for the 90-day total investment horizon Air Lease is expected to generate 0.66 times more return on investment than Seanergy Maritime. However, Air Lease is 1.52 times less risky than Seanergy Maritime. It trades about 0.16 of its potential returns per unit of risk. Seanergy Maritime Holdings is currently generating about -0.19 per unit of risk. If you would invest  4,378  in Air Lease on September 4, 2024 and sell it today you would earn a total of  682.00  from holding Air Lease or generate 15.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Air Lease  vs.  Seanergy Maritime Holdings

Air Lease

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Air Lease are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile essential indicators, Air Lease disclosed solid returns over the last few months and may actually be approaching a breakup point.

Seanergy Maritime

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Seanergy Maritime Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's forward indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Air Lease and Seanergy Maritime

The main advantage of trading using opposite Air Lease and Seanergy Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease 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.

The idea behind Air Lease and Seanergy Maritime Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.