Correlation Between Genco Shipping and Poste Italiane
Can any of the company-specific risk be diversified away by investing in both Genco Shipping and Poste Italiane 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 Poste Italiane 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 Poste Italiane SpA, you can compare the effects of market volatilities on Genco Shipping and Poste Italiane 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 Poste Italiane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genco Shipping and Poste Italiane.
Diversification Opportunities for Genco Shipping and Poste Italiane
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Genco and Poste is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Genco Shipping Trading and Poste Italiane SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poste Italiane SpA 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 Poste Italiane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poste Italiane SpA has no effect on the direction of Genco Shipping i.e., Genco Shipping and Poste Italiane go up and down completely randomly.
Pair Corralation between Genco Shipping and Poste Italiane
Assuming the 90 days trading horizon Genco Shipping Trading is expected to under-perform the Poste Italiane. In addition to that, Genco Shipping is 1.54 times more volatile than Poste Italiane SpA. It trades about -0.07 of its total potential returns per unit of risk. Poste Italiane SpA is currently generating about 0.1 per unit of volatility. If you would invest 1,113 in Poste Italiane SpA on September 3, 2024 and sell it today you would earn a total of 211.00 from holding Poste Italiane SpA or generate 18.96% 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. Poste Italiane SpA
Performance |
| Timeline |
| Genco Shipping Trading |
| Poste Italiane SpA |
Genco Shipping and Poste Italiane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genco Shipping and Poste Italiane
The main advantage of trading using opposite Genco Shipping and Poste Italiane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genco Shipping position performs unexpectedly, Poste Italiane 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 Poste Italiane will offset losses from the drop in Poste Italiane's long position.| Genco Shipping vs. GRIFFIN MINING LTD | Genco Shipping vs. Retail Estates NV | Genco Shipping vs. Evolution Mining Limited | Genco Shipping vs. National Retail Properties |
| Poste Italiane vs. Genco Shipping Trading | Poste Italiane vs. NORWEGIAN AIR SHUT | Poste Italiane vs. Japan Tobacco | Poste Italiane vs. Wizz Air Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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