Correlation Between Kirby and Seanergy Maritime

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

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

Diversification Opportunities for Kirby and Seanergy Maritime

-0.23

Correlation Coefficient

Kirby  Seanergy Maritime

Very good diversification

The 3 months correlation between Kirby and Seanergy is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Kirby and Seanergy Maritime Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seanergy Maritime and Kirby 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 Kirby 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 Kirby i.e., Kirby and Seanergy Maritime go up and down completely randomly.

Pair Corralation between Kirby and Seanergy Maritime

Considering the 90-day investment horizon Kirby is expected to under-perform the Seanergy Maritime. But the stock apears to be less risky and, when comparing its historical volatility, Kirby is 1.29 times less risky than Seanergy Maritime. The stock trades about -0.04 of its potential returns per unit of risk. The Seanergy Maritime Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  662.00  in Seanergy Maritime Holdings on December 29, 2024 and sell it today you would earn a total of  2.00  from holding Seanergy Maritime Holdings or generate 0.3% return on investment over 90 days.

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

Kirby  vs.  Seanergy Maritime Holdings

Kirby

Risk-Adjusted Performance

Very Weak

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

Seanergy Maritime

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Seanergy Maritime Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable forward indicators, Seanergy Maritime is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Kirby and Seanergy Maritime

The main advantage of trading using opposite Kirby and Seanergy Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirby 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 Kirby 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.