Correlation Between Eagle Bulk and Genco Shipping
Can any of the company-specific risk be diversified away by investing in both Eagle Bulk 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 Eagle Bulk and Genco Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Bulk Shipping and Genco Shipping Trading, you can compare the effects of market volatilities on Eagle Bulk 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 Eagle Bulk with a short position of Genco Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Bulk and Genco Shipping.
Diversification Opportunities for Eagle Bulk and Genco Shipping
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eagle and Genco is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Bulk Shipping 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 Eagle Bulk 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 Eagle Bulk Shipping 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 Eagle Bulk i.e., Eagle Bulk and Genco Shipping go up and down completely randomly.
Pair Corralation between Eagle Bulk and Genco Shipping
If you would invest 4,350 in Eagle Bulk Shipping on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Eagle Bulk Shipping or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 2.27% |
| Values | Daily Returns |
Eagle Bulk Shipping vs. Genco Shipping Trading
Performance |
| Timeline |
| Eagle Bulk Shipping |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Genco Shipping Trading |
Eagle Bulk and Genco Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Bulk and Genco Shipping
The main advantage of trading using opposite Eagle Bulk and Genco Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Bulk 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.| Eagle Bulk vs. Star Bulk Carriers | Eagle Bulk vs. Golden Ocean Group | Eagle Bulk vs. Global Ship Lease | Eagle Bulk vs. Diana Shipping |
| Genco Shipping vs. Star Bulk Carriers | Genco Shipping vs. TOP Ships | Genco Shipping vs. Seanergy Maritime Holdings | Genco Shipping vs. Performance Shipping |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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