Correlation Between Genco Shipping and CPLP Old
Can any of the company-specific risk be diversified away by investing in both Genco Shipping and CPLP Old 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 Genco Shipping and CPLP Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genco Shipping Trading and CPLP Old, you can compare the effects of market volatilities on Genco Shipping and CPLP Old 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 Genco Shipping with a short position of CPLP Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genco Shipping and CPLP Old.
Diversification Opportunities for Genco Shipping and CPLP Old
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Genco and CPLP is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Genco Shipping Trading and CPLP Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPLP Old and Genco Shipping 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 Genco Shipping Trading are associated (or correlated) with CPLP Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPLP Old has no effect on the direction of Genco Shipping i.e., Genco Shipping and CPLP Old go up and down completely randomly.
Pair Corralation between Genco Shipping and CPLP Old
If you would invest 1,458 in Genco Shipping Trading on November 2, 2024 and sell it today you would earn a total of 7.00 from holding Genco Shipping Trading or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Genco Shipping Trading vs. CPLP Old
Performance |
| Timeline |
| Genco Shipping Trading |
| CPLP Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Genco Shipping and CPLP Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genco Shipping and CPLP Old
The main advantage of trading using opposite Genco Shipping and CPLP Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genco Shipping position performs unexpectedly, CPLP Old 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 CPLP Old will offset losses from the drop in CPLP Old's long position.| Genco Shipping vs. Star Bulk Carriers | Genco Shipping vs. Golden Ocean Group | Genco Shipping vs. Global Ship Lease | Genco Shipping vs. Danaos |
| CPLP Old vs. Danaos | CPLP Old vs. Global Ship Lease | CPLP Old vs. Euroseas | CPLP Old vs. Navios Maritime Partners |
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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