Correlation Between Genco Shipping and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Genco Shipping and CompuGroup Medical 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 CompuGroup Medical 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 CompuGroup Medical SE, you can compare the effects of market volatilities on Genco Shipping and CompuGroup Medical 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 CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genco Shipping and CompuGroup Medical.
Diversification Opportunities for Genco Shipping and CompuGroup Medical
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Genco and CompuGroup is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Genco Shipping Trading and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical 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 CompuGroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompuGroup Medical has no effect on the direction of Genco Shipping i.e., Genco Shipping and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Genco Shipping and CompuGroup Medical
Assuming the 90 days trading horizon Genco Shipping Trading is expected to generate 0.69 times more return on investment than CompuGroup Medical. However, Genco Shipping Trading is 1.46 times less risky than CompuGroup Medical. It trades about 0.06 of its potential returns per unit of risk. CompuGroup Medical SE is currently generating about -0.08 per unit of risk. If you would invest 1,167 in Genco Shipping Trading on September 3, 2024 and sell it today you would earn a total of 337.00 from holding Genco Shipping Trading or generate 28.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genco Shipping Trading vs. CompuGroup Medical SE
Performance |
| Timeline |
| Genco Shipping Trading |
| CompuGroup Medical |
Genco Shipping and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genco Shipping and CompuGroup Medical
The main advantage of trading using opposite Genco Shipping and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genco Shipping position performs unexpectedly, CompuGroup Medical 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 CompuGroup Medical will offset losses from the drop in CompuGroup Medical'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 |
| CompuGroup Medical vs. DOCDATA | CompuGroup Medical vs. DATAGROUP SE | CompuGroup Medical vs. AECOM TECHNOLOGY | CompuGroup Medical vs. Hyrican Informationssysteme Aktiengesellschaft |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |