Correlation Between NORDIC HALIBUT and Genco Shipping
Can any of the company-specific risk be diversified away by investing in both NORDIC HALIBUT 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 NORDIC HALIBUT and Genco Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NORDIC HALIBUT AS and Genco Shipping Trading, you can compare the effects of market volatilities on NORDIC HALIBUT 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 NORDIC HALIBUT with a short position of Genco Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORDIC HALIBUT and Genco Shipping.
Diversification Opportunities for NORDIC HALIBUT and Genco Shipping
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between NORDIC and Genco is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding NORDIC HALIBUT AS 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 NORDIC HALIBUT 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 NORDIC HALIBUT AS 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 NORDIC HALIBUT i.e., NORDIC HALIBUT and Genco Shipping go up and down completely randomly.
Pair Corralation between NORDIC HALIBUT and Genco Shipping
Assuming the 90 days horizon NORDIC HALIBUT AS is expected to under-perform the Genco Shipping. In addition to that, NORDIC HALIBUT is 2.0 times more volatile than Genco Shipping Trading. It trades about -0.25 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 1,593 in Genco Shipping Trading on September 12, 2024 and sell it today you would lose (156.00) from holding Genco Shipping Trading or give up 9.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NORDIC HALIBUT AS vs. Genco Shipping Trading
Performance |
| Timeline |
| NORDIC HALIBUT AS |
| Genco Shipping Trading |
NORDIC HALIBUT and Genco Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORDIC HALIBUT and Genco Shipping
The main advantage of trading using opposite NORDIC HALIBUT and Genco Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORDIC HALIBUT 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.| NORDIC HALIBUT vs. BJs Wholesale Club | NORDIC HALIBUT vs. Ross Stores | NORDIC HALIBUT vs. PICKN PAY STORES | NORDIC HALIBUT vs. Solstad Offshore ASA |
| Genco Shipping vs. Superior Plus Corp | Genco Shipping vs. SIVERS SEMICONDUCTORS AB | Genco Shipping vs. CHINA HUARONG ENERHD 50 | Genco Shipping vs. NORDIC HALIBUT AS |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |