Correlation Between FIRST SAVINGS and Genco Shipping
Can any of the company-specific risk be diversified away by investing in both FIRST 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 FIRST 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 FIRST SAVINGS FINL and Genco Shipping Trading, you can compare the effects of market volatilities on FIRST 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 FIRST SAVINGS with a short position of Genco Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIRST SAVINGS and Genco Shipping.
Diversification Opportunities for FIRST SAVINGS and Genco Shipping
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FIRST and Genco is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding FIRST SAVINGS FINL 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 FIRST 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 FIRST SAVINGS FINL 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 FIRST SAVINGS i.e., FIRST SAVINGS and Genco Shipping go up and down completely randomly.
Pair Corralation between FIRST SAVINGS and Genco Shipping
Assuming the 90 days horizon FIRST SAVINGS FINL is expected to under-perform the Genco Shipping. But the stock apears to be less risky and, when comparing its historical volatility, FIRST SAVINGS FINL is 1.2 times less risky than Genco Shipping. The stock trades about -0.16 of its potential returns per unit of risk. The Genco Shipping Trading is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,351 in Genco Shipping Trading on November 3, 2024 and sell it today you would earn a total of 33.00 from holding Genco Shipping Trading or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIRST SAVINGS FINL vs. Genco Shipping Trading
Performance |
| Timeline |
| FIRST SAVINGS FINL |
| Genco Shipping Trading |
FIRST SAVINGS and Genco Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIRST SAVINGS and Genco Shipping
The main advantage of trading using opposite FIRST SAVINGS and Genco Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIRST 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.| FIRST SAVINGS vs. SIDETRADE EO 1 | FIRST SAVINGS vs. TRADELINK ELECTRON | FIRST SAVINGS vs. Medical Properties Trust | FIRST SAVINGS vs. Inspire Medical Systems |
| Genco Shipping vs. JAPAN TOBACCO UNSPADR12 | Genco Shipping vs. Hemisphere Energy Corp | Genco Shipping vs. Solstad Offshore ASA | Genco Shipping vs. Casio Computer CoLtd |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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