Correlation Between FIRST SHIP and SEEK

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

By analyzing existing cross correlation between FIRST SHIP LEASE and SEEK Limited, you can compare the effects of market volatilities on FIRST SHIP and SEEK 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 FIRST SHIP with a short position of SEEK. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIRST SHIP and SEEK.

Diversification Opportunities for FIRST SHIP and SEEK

-0.33

Correlation Coefficient

FIRST SHIP  SEEK

Very good diversification

The 3 months correlation between FIRST and SEEK is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding FIRST SHIP LEASE and SEEK Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEEK Limited and FIRST SHIP 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 FIRST SHIP LEASE are associated (or correlated) with SEEK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEEK Limited has no effect on the direction of FIRST SHIP i.e., FIRST SHIP and SEEK go up and down completely randomly.

Pair Corralation between FIRST SHIP and SEEK

Assuming the 90 days horizon FIRST SHIP LEASE is expected to under-perform the SEEK. In addition to that, FIRST SHIP is 1.81 times more volatile than SEEK Limited. It trades about -0.05 of its total potential returns per unit of risk. SEEK Limited is currently generating about 0.1 per unit of volatility. If you would invest  1,230  in SEEK Limited on May 10, 2025 and sell it today you would earn a total of  120.00  from holding SEEK Limited or generate 9.76% return on investment over 90 days.

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

FIRST SHIP LEASE  vs.  SEEK Limited

FIRST SHIP LEASE

Risk-Adjusted Performance

Weakest

Over the last 90 days FIRST SHIP LEASE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

SEEK Limited

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in SEEK Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SEEK may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with FIRST SHIP and SEEK

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

The idea behind FIRST SHIP LEASE and SEEK Limited 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.