Correlation Between GFL ENVIRONM(SUBVTSH and Genco Shipping
Can any of the company-specific risk be diversified away by investing in both GFL ENVIRONM(SUBVTSH 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 GFL ENVIRONM(SUBVTSH and Genco Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GFL ENVIRONM and Genco Shipping Trading, you can compare the effects of market volatilities on GFL ENVIRONM(SUBVTSH 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 GFL ENVIRONM(SUBVTSH with a short position of Genco Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of GFL ENVIRONM(SUBVTSH and Genco Shipping.
Diversification Opportunities for GFL ENVIRONM(SUBVTSH and Genco Shipping
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GFL and Genco is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding GFL ENVIRONM 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 GFL ENVIRONM(SUBVTSH 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 GFL ENVIRONM 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 GFL ENVIRONM(SUBVTSH i.e., GFL ENVIRONM(SUBVTSH and Genco Shipping go up and down completely randomly.
Pair Corralation between GFL ENVIRONM(SUBVTSH and Genco Shipping
Assuming the 90 days horizon GFL ENVIRONM is expected to generate 0.66 times more return on investment than Genco Shipping. However, GFL ENVIRONM is 1.51 times less risky than Genco Shipping. It trades about 0.06 of its potential returns per unit of risk. Genco Shipping Trading is currently generating about 0.03 per unit of risk. If you would invest 2,651 in GFL ENVIRONM on September 2, 2024 and sell it today you would earn a total of 1,749 from holding GFL ENVIRONM or generate 65.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GFL ENVIRONM vs. Genco Shipping Trading
Performance |
| Timeline |
| GFL ENVIRONM(SUBVTSH |
| Genco Shipping Trading |
GFL ENVIRONM(SUBVTSH and Genco Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GFL ENVIRONM(SUBVTSH and Genco Shipping
The main advantage of trading using opposite GFL ENVIRONM(SUBVTSH and Genco Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GFL ENVIRONM(SUBVTSH 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.| GFL ENVIRONM(SUBVTSH vs. Veolia Environnement SA | GFL ENVIRONM(SUBVTSH vs. Superior Plus Corp | GFL ENVIRONM(SUBVTSH vs. NMI Holdings | GFL ENVIRONM(SUBVTSH vs. Origin Agritech |
| Genco Shipping vs. MGIC INVESTMENT | Genco Shipping vs. Apollo Investment Corp | Genco Shipping vs. KAUFMAN ET BROAD | Genco Shipping vs. Transportadora de Gas |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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