Correlation Between Genco Shipping and Himalaya Shipping
Can any of the company-specific risk be diversified away by investing in both Genco Shipping and Himalaya 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 Genco Shipping and Himalaya Shipping 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 Himalaya Shipping, you can compare the effects of market volatilities on Genco Shipping and Himalaya 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 Genco Shipping with a short position of Himalaya Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genco Shipping and Himalaya Shipping.
Diversification Opportunities for Genco Shipping and Himalaya Shipping
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Genco and Himalaya is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Genco Shipping Trading and Himalaya Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Himalaya 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 Himalaya Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Himalaya Shipping has no effect on the direction of Genco Shipping i.e., Genco Shipping and Himalaya Shipping go up and down completely randomly.
Pair Corralation between Genco Shipping and Himalaya Shipping
Considering the 90-day investment horizon Genco Shipping Trading is expected to generate 0.72 times more return on investment than Himalaya Shipping. However, Genco Shipping Trading is 1.39 times less risky than Himalaya Shipping. It trades about 0.12 of its potential returns per unit of risk. Himalaya Shipping is currently generating about -0.03 per unit of risk. If you would invest 1,394 in Genco Shipping Trading on November 1, 2024 and sell it today you would earn a total of 61.00 from holding Genco Shipping Trading or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genco Shipping Trading vs. Himalaya Shipping
Performance |
| Timeline |
| Genco Shipping Trading |
| Himalaya Shipping |
Genco Shipping and Himalaya Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genco Shipping and Himalaya Shipping
The main advantage of trading using opposite Genco Shipping and Himalaya Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genco Shipping position performs unexpectedly, Himalaya 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 Himalaya Shipping will offset losses from the drop in Himalaya Shipping'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 |
| Himalaya Shipping vs. Q2 Holdings | Himalaya Shipping vs. Weyco Group | Himalaya Shipping vs. Sapiens International | Himalaya Shipping vs. Uber Technologies |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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