Correlation Between Seanergy Maritime and Okeanis Eco

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

Diversification Opportunities for Seanergy Maritime and Okeanis Eco

0.88

Correlation Coefficient

Seanergy Maritime  Okeanis Eco

Very poor diversification

The 3 months correlation between Seanergy and Okeanis is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Seanergy Maritime Holdings and Okeanis Eco Tankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Okeanis Eco Tankers 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 Okeanis Eco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Okeanis Eco Tankers has no effect on the direction of Seanergy Maritime i.e., Seanergy Maritime and Okeanis Eco go up and down completely randomly.

Pair Corralation between Seanergy Maritime and Okeanis Eco

Given the investment horizon of 90 days Seanergy Maritime Holdings is expected to generate 0.92 times more return on investment than Okeanis Eco. However, Seanergy Maritime Holdings is 1.08 times less risky than Okeanis Eco. It trades about -0.19 of its potential returns per unit of risk. Okeanis Eco Tankers is currently generating about -0.18 per unit of risk. If you would invest  1,080  in Seanergy Maritime Holdings on September 4, 2024 and sell it today you would lose (286.00) from holding Seanergy Maritime Holdings or give up 26.48% of portfolio value over 90 days.

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

Seanergy Maritime Holdings  vs.  Okeanis Eco Tankers

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.

Okeanis Eco Tankers

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Okeanis Eco Tankers has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Seanergy Maritime and Okeanis Eco

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

The idea behind Seanergy Maritime Holdings and Okeanis Eco Tankers 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.