Correlation Between Seanergy Maritime and Costamare

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

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

Diversification Opportunities for Seanergy Maritime and Costamare

0.56

Correlation Coefficient

Seanergy Maritime  Costamare

Very weak diversification

The 3 months correlation between Seanergy and Costamare is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Seanergy Maritime Holdings and Costamare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Costamare and Seanergy Maritime 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 Seanergy Maritime Holdings are associated (or correlated) with Costamare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Costamare has no effect on the direction of Seanergy Maritime i.e., Seanergy Maritime and Costamare go up and down completely randomly.

Pair Corralation between Seanergy Maritime and Costamare

Given the investment horizon of 90 days Seanergy Maritime Holdings is expected to under-perform the Costamare. In addition to that, Seanergy Maritime is 1.15 times more volatile than Costamare. It trades about -0.18 of its total potential returns per unit of risk. Costamare is currently generating about 0.01 per unit of volatility. If you would invest  1,329  in Costamare on September 3, 2024 and sell it today you would lose (9.00) from holding Costamare or give up 0.68% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Seanergy Maritime Holdings  vs.  Costamare

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.

Costamare

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Costamare has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Costamare is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Seanergy Maritime and Costamare

The main advantage of trading using opposite Seanergy Maritime and Costamare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seanergy Maritime position performs unexpectedly, Costamare 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 Costamare will offset losses from the drop in Costamare's long position.

The idea behind Seanergy Maritime Holdings and Costamare 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 Commodity Directory module to find actively traded commodities issued by global exchanges.