Correlation Between Aecom Technology and SEACOR Marine

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Aecom Technology and SEACOR Marine 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 Aecom Technology and SEACOR Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aecom Technology and SEACOR Marine Holdings, you can compare the effects of market volatilities on Aecom Technology and SEACOR Marine 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 Aecom Technology with a short position of SEACOR Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aecom Technology and SEACOR Marine.

Diversification Opportunities for Aecom Technology and SEACOR Marine

0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Aecom and SEACOR is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Aecom Technology and SEACOR Marine Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEACOR Marine Holdings and Aecom Technology 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 Aecom Technology are associated (or correlated) with SEACOR Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEACOR Marine Holdings has no effect on the direction of Aecom Technology i.e., Aecom Technology and SEACOR Marine go up and down completely randomly.

Pair Corralation between Aecom Technology and SEACOR Marine

Considering the 90-day investment horizon Aecom Technology is expected to generate 2.68 times less return on investment than SEACOR Marine. But when comparing it to its historical volatility, Aecom Technology is 2.29 times less risky than SEACOR Marine. It trades about 0.04 of its potential returns per unit of risk. SEACOR Marine Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  786.00  in SEACOR Marine Holdings on December 29, 2023 and sell it today you would earn a total of  609.00  from holding SEACOR Marine Holdings or generate 77.48% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Aecom Technology  vs.  SEACOR Marine Holdings

 Performance 
       Timeline  
Aecom Technology 

Risk-Adjusted Performance

6 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Aecom Technology are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Aecom Technology is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.
SEACOR Marine Holdings 

Risk-Adjusted Performance

5 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in SEACOR Marine Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical indicators, SEACOR Marine demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Aecom Technology and SEACOR Marine Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aecom Technology and SEACOR Marine

The main advantage of trading using opposite Aecom Technology and SEACOR Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aecom Technology position performs unexpectedly, SEACOR Marine 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 SEACOR Marine will offset losses from the drop in SEACOR Marine's long position.
The idea behind Aecom Technology and SEACOR Marine 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.
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

Other Complementary Tools

AI Investment Finder
Use AI to screen and filter profitable investment opportunities
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Global Correlations
Find global opportunities by holding instruments from different markets
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Money Managers
Screen money managers from public funds and ETFs managed around the world
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites