Correlation Between Genco Shipping and Ultrapetrol Bahamas
Can any of the company-specific risk be diversified away by investing in both Genco Shipping and Ultrapetrol Bahamas 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 Ultrapetrol Bahamas 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 Ultrapetrol Bahamas, you can compare the effects of market volatilities on Genco Shipping and Ultrapetrol Bahamas 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 Ultrapetrol Bahamas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genco Shipping and Ultrapetrol Bahamas.
Diversification Opportunities for Genco Shipping and Ultrapetrol Bahamas
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Genco and Ultrapetrol is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Genco Shipping Trading and Ultrapetrol Bahamas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultrapetrol Bahamas 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 Ultrapetrol Bahamas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultrapetrol Bahamas has no effect on the direction of Genco Shipping i.e., Genco Shipping and Ultrapetrol Bahamas go up and down completely randomly.
Pair Corralation between Genco Shipping and Ultrapetrol Bahamas
If you would invest 1,530 in Genco Shipping Trading on August 31, 2024 and sell it today you would earn a total of 73.00 from holding Genco Shipping Trading or generate 4.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Genco Shipping Trading vs. Ultrapetrol Bahamas
Performance |
| Timeline |
| Genco Shipping Trading |
| Ultrapetrol Bahamas |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Genco Shipping and Ultrapetrol Bahamas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genco Shipping and Ultrapetrol Bahamas
The main advantage of trading using opposite Genco Shipping and Ultrapetrol Bahamas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genco Shipping position performs unexpectedly, Ultrapetrol Bahamas 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 Ultrapetrol Bahamas will offset losses from the drop in Ultrapetrol Bahamas' long position.| Genco Shipping vs. Star Bulk Carriers | Genco Shipping vs. Golden Ocean Group | Genco Shipping vs. Global Ship Lease | Genco Shipping vs. Danaos |
| Ultrapetrol Bahamas vs. Genco Shipping Trading | Ultrapetrol Bahamas vs. Golden Ocean Group | Ultrapetrol Bahamas vs. Kirby | Ultrapetrol Bahamas vs. Matson Inc |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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