Correlation Between Seanergy Maritime and Euroseas

Can any of the company-specific risk be diversified away by investing in both Seanergy Maritime and Euroseas 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 Euroseas 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 Euroseas, you can compare the effects of market volatilities on Seanergy Maritime and Euroseas 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 Euroseas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seanergy Maritime and Euroseas.

Diversification Opportunities for Seanergy Maritime and Euroseas

0.86

Correlation Coefficient

Seanergy Maritime  Euroseas

Very poor diversification

The 3 months correlation between Seanergy and Euroseas is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Seanergy Maritime Holdings and Euroseas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euroseas 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 Euroseas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euroseas has no effect on the direction of Seanergy Maritime i.e., Seanergy Maritime and Euroseas go up and down completely randomly.

Pair Corralation between Seanergy Maritime and Euroseas

Given the investment horizon of 90 days Seanergy Maritime is expected to generate 1.43 times less return on investment than Euroseas. In addition to that, Seanergy Maritime is 1.12 times more volatile than Euroseas. It trades about 0.05 of its total potential returns per unit of risk. Euroseas is currently generating about 0.08 per unit of volatility. If you would invest  1,678  in Euroseas on September 4, 2024 and sell it today you would earn a total of  2,281  from holding Euroseas or generate 135.94% return on investment over 90 days.

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

Seanergy Maritime Holdings  vs.  Euroseas

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.

Euroseas

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Euroseas has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Euroseas is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Seanergy Maritime and Euroseas

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

The idea behind Seanergy Maritime Holdings and Euroseas 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.

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.