Correlation Between Gladstone Investment and Genco Shipping
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment and Genco Shipping 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 Gladstone Investment and Genco Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and Genco Shipping Trading, you can compare the effects of market volatilities on Gladstone Investment and Genco Shipping 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 Gladstone Investment with a short position of Genco Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and Genco Shipping.
Diversification Opportunities for Gladstone Investment and Genco Shipping
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gladstone and Genco is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and Genco Shipping Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genco Shipping Trading and Gladstone Investment 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 Gladstone Investment are associated (or correlated) with Genco Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genco Shipping Trading has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and Genco Shipping go up and down completely randomly.
Pair Corralation between Gladstone Investment and Genco Shipping
Assuming the 90 days horizon Gladstone Investment is expected to generate 25.04 times less return on investment than Genco Shipping. In addition to that, Gladstone Investment is 1.18 times more volatile than Genco Shipping Trading. It trades about 0.01 of its total potential returns per unit of risk. Genco Shipping Trading is currently generating about 0.29 per unit of volatility. If you would invest 1,389 in Genco Shipping Trading on August 31, 2024 and sell it today you would earn a total of 159.00 from holding Genco Shipping Trading or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Investment vs. Genco Shipping Trading
Performance |
| Timeline |
| Gladstone Investment |
| Genco Shipping Trading |
Gladstone Investment and Genco Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and Genco Shipping
The main advantage of trading using opposite Gladstone Investment and Genco Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment position performs unexpectedly, Genco Shipping 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 Genco Shipping will offset losses from the drop in Genco Shipping's long position.| Gladstone Investment vs. QUEEN S ROAD | Gladstone Investment vs. Air Transport Services | Gladstone Investment vs. Gold Road Resources | Gladstone Investment vs. GOLD ROAD RES |
| Genco Shipping vs. Clarkson PLC | Genco Shipping vs. Wilh Wilhelmsen Holding | Genco Shipping vs. Superior Plus Corp | Genco Shipping vs. NMI Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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