Correlation Between Postal Savings and Genco Shipping
Can any of the company-specific risk be diversified away by investing in both Postal Savings 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 Postal Savings and Genco Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Postal Savings Bank and Genco Shipping Trading, you can compare the effects of market volatilities on Postal Savings 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 Postal Savings with a short position of Genco Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and Genco Shipping.
Diversification Opportunities for Postal Savings and Genco Shipping
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Postal and Genco is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank 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 Postal Savings 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 Postal Savings Bank 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 Postal Savings i.e., Postal Savings and Genco Shipping go up and down completely randomly.
Pair Corralation between Postal Savings and Genco Shipping
Assuming the 90 days horizon Postal Savings is expected to generate 30.17 times less return on investment than Genco Shipping. In addition to that, Postal Savings is 1.01 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 0.28 per unit of volatility. If you would invest 1,417 in Genco Shipping Trading on August 30, 2024 and sell it today you would earn a total of 170.00 from holding Genco Shipping Trading or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Postal Savings Bank vs. Genco Shipping Trading
Performance |
| Timeline |
| Postal Savings Bank |
| Genco Shipping Trading |
Postal Savings and Genco Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and Genco Shipping
The main advantage of trading using opposite Postal Savings and Genco Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings 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.| Postal Savings vs. Perdoceo Education | Postal Savings vs. STRAYER EDUCATION | Postal Savings vs. Costco Wholesale Corp | Postal Savings vs. Tsingtao Brewery |
| Genco Shipping vs. PACIFIC ONLINE | Genco Shipping vs. FAST RETAIL ADR | Genco Shipping vs. BURLINGTON STORES | Genco Shipping vs. YATRA ONLINE DL 0001 |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |