Correlation Between Genco Shipping and Global Ship
Can any of the company-specific risk be diversified away by investing in both Genco Shipping and Global Ship 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 Global Ship 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 Global Ship Lease, you can compare the effects of market volatilities on Genco Shipping and Global Ship 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 Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genco Shipping and Global Ship.
Diversification Opportunities for Genco Shipping and Global Ship
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Genco and Global is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Genco Shipping Trading and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease 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 Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of Genco Shipping i.e., Genco Shipping and Global Ship go up and down completely randomly.
Pair Corralation between Genco Shipping and Global Ship
Considering the 90-day investment horizon Genco Shipping Trading is expected to generate 0.83 times more return on investment than Global Ship. However, Genco Shipping Trading is 1.21 times less risky than Global Ship. It trades about 0.29 of its potential returns per unit of risk. Global Ship Lease is currently generating about -0.09 per unit of risk. If you would invest 1,530 in Genco Shipping Trading on August 27, 2024 and sell it today you would earn a total of 156.00 from holding Genco Shipping Trading or generate 10.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genco Shipping Trading vs. Global Ship Lease
Performance |
| Timeline |
| Genco Shipping Trading |
| Global Ship Lease |
Genco Shipping and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genco Shipping and Global Ship
The main advantage of trading using opposite Genco Shipping and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genco Shipping position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship's long position.| Genco Shipping vs. Star Bulk Carriers | Genco Shipping vs. TOP Ships | Genco Shipping vs. Seanergy Maritime Holdings | Genco Shipping vs. Performance Shipping |
| Global Ship vs. Costamare | Global Ship vs. Navios Maritime Partners | Global Ship vs. Genco Shipping Trading | Global Ship vs. Star Bulk Carriers |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Correlations Find global opportunities by holding instruments from different markets |