Correlation Between Genco Shipping and HYDROFARM HLD
Can any of the company-specific risk be diversified away by investing in both Genco Shipping and HYDROFARM HLD 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 HYDROFARM HLD 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 HYDROFARM HLD GRP, you can compare the effects of market volatilities on Genco Shipping and HYDROFARM HLD 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 HYDROFARM HLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genco Shipping and HYDROFARM HLD.
Diversification Opportunities for Genco Shipping and HYDROFARM HLD
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Genco and HYDROFARM is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Genco Shipping Trading and HYDROFARM HLD GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYDROFARM HLD GRP 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 HYDROFARM HLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYDROFARM HLD GRP has no effect on the direction of Genco Shipping i.e., Genco Shipping and HYDROFARM HLD go up and down completely randomly.
Pair Corralation between Genco Shipping and HYDROFARM HLD
Assuming the 90 days trading horizon Genco Shipping Trading is expected to generate 0.35 times more return on investment than HYDROFARM HLD. However, Genco Shipping Trading is 2.86 times less risky than HYDROFARM HLD. It trades about 0.35 of its potential returns per unit of risk. HYDROFARM HLD GRP is currently generating about 0.01 per unit of risk. If you would invest 1,384 in Genco Shipping Trading on August 27, 2024 and sell it today you would earn a total of 189.00 from holding Genco Shipping Trading or generate 13.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genco Shipping Trading vs. HYDROFARM HLD GRP
Performance |
| Timeline |
| Genco Shipping Trading |
| HYDROFARM HLD GRP |
Genco Shipping and HYDROFARM HLD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genco Shipping and HYDROFARM HLD
The main advantage of trading using opposite Genco Shipping and HYDROFARM HLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genco Shipping position performs unexpectedly, HYDROFARM HLD 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 HYDROFARM HLD will offset losses from the drop in HYDROFARM HLD's long position.| Genco Shipping vs. GUARDANT HEALTH CL | Genco Shipping vs. Natural Health Trends | Genco Shipping vs. YOOMA WELLNESS INC | Genco Shipping vs. EPSILON HEALTHCARE LTD |
| HYDROFARM HLD vs. Superior Plus Corp | HYDROFARM HLD vs. NMI Holdings | HYDROFARM HLD vs. Origin Agritech | HYDROFARM HLD vs. SIVERS SEMICONDUCTORS AB |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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