Correlation Between Genco Shipping and Kirby
Can any of the company-specific risk be diversified away by investing in both Genco Shipping and Kirby 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 Kirby 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 Kirby, you can compare the effects of market volatilities on Genco Shipping and Kirby 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 Kirby. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genco Shipping and Kirby.
Diversification Opportunities for Genco Shipping and Kirby
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Genco and Kirby is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Genco Shipping Trading and Kirby in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirby 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 Kirby. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirby has no effect on the direction of Genco Shipping i.e., Genco Shipping and Kirby go up and down completely randomly.
Pair Corralation between Genco Shipping and Kirby
Considering the 90-day investment horizon Genco Shipping Trading is expected to generate 0.99 times more return on investment than Kirby. However, Genco Shipping Trading is 1.01 times less risky than Kirby. It trades about 0.09 of its potential returns per unit of risk. Kirby is currently generating about 0.06 per unit of risk. If you would invest 1,406 in Genco Shipping Trading on November 9, 2024 and sell it today you would earn a total of 46.00 from holding Genco Shipping Trading or generate 3.27% 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. Kirby
Performance |
| Timeline |
| Genco Shipping Trading |
| Kirby |
Genco Shipping and Kirby Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genco Shipping and Kirby
The main advantage of trading using opposite Genco Shipping and Kirby positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genco Shipping position performs unexpectedly, Kirby 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 Kirby will offset losses from the drop in Kirby'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 |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |