Correlation Between Seanergy Maritime and Safe Bulkers

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

Diversification Opportunities for Seanergy Maritime and Safe Bulkers

0.38

Correlation Coefficient

Seanergy Maritime  Safe Bulkers

Weak diversification

The 3 months correlation between Seanergy and Safe is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Seanergy Maritime Holdings and Safe Bulkers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe Bulkers 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 Safe Bulkers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safe Bulkers has no effect on the direction of Seanergy Maritime i.e., Seanergy Maritime and Safe Bulkers go up and down completely randomly.

Pair Corralation between Seanergy Maritime and Safe Bulkers

Given the investment horizon of 90 days Seanergy Maritime is expected to generate 3.86 times less return on investment than Safe Bulkers. In addition to that, Seanergy Maritime is 1.03 times more volatile than Safe Bulkers. It trades about 0.02 of its total potential returns per unit of risk. Safe Bulkers is currently generating about 0.08 per unit of volatility. If you would invest  343.00  in Safe Bulkers on December 28, 2024 and sell it today you would earn a total of  33.00  from holding Safe Bulkers or generate 9.62% return on investment over 90 days.

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

Seanergy Maritime Holdings  vs.  Safe Bulkers

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.

Safe Bulkers

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Safe Bulkers are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, Safe Bulkers may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Seanergy Maritime and Safe Bulkers

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

The idea behind Seanergy Maritime Holdings and Safe Bulkers 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 Stocks Directory module to find actively traded stocks across global markets.