Correlation Between Genco Shipping and Eagle Bulk
Can any of the company-specific risk be diversified away by investing in both Genco Shipping and Eagle Bulk 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 Eagle Bulk 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 Eagle Bulk Shipping, you can compare the effects of market volatilities on Genco Shipping and Eagle Bulk 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 Eagle Bulk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genco Shipping and Eagle Bulk.
Diversification Opportunities for Genco Shipping and Eagle Bulk
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genco and Eagle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genco Shipping Trading and Eagle Bulk Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Bulk Shipping 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 Eagle Bulk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Bulk Shipping has no effect on the direction of Genco Shipping i.e., Genco Shipping and Eagle Bulk go up and down completely randomly.
Pair Corralation between Genco Shipping and Eagle Bulk
If you would invest (100.00) in Eagle Bulk Shipping on November 18, 2024 and sell it today you would earn a total of 100.00 from holding Eagle Bulk Shipping or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Genco Shipping Trading vs. Eagle Bulk Shipping
Performance |
| Timeline |
| Genco Shipping Trading |
| Eagle Bulk Shipping |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Genco Shipping and Eagle Bulk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genco Shipping and Eagle Bulk
The main advantage of trading using opposite Genco Shipping and Eagle Bulk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genco Shipping position performs unexpectedly, Eagle Bulk 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 Eagle Bulk will offset losses from the drop in Eagle Bulk'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 |
| Eagle Bulk vs. Star Bulk Carriers | Eagle Bulk vs. Golden Ocean Group | Eagle Bulk vs. Global Ship Lease | Eagle Bulk vs. Diana 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stocks Directory Find actively traded stocks across global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |