Correlation Between Genco Shipping and Diamyd Medical
Can any of the company-specific risk be diversified away by investing in both Genco Shipping and Diamyd 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 Diamyd 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 Diamyd Medical AB, you can compare the effects of market volatilities on Genco Shipping and Diamyd 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 Diamyd Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genco Shipping and Diamyd Medical.
Diversification Opportunities for Genco Shipping and Diamyd Medical
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Genco and Diamyd is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Genco Shipping Trading and Diamyd Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diamyd Medical AB 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 Diamyd Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diamyd Medical AB has no effect on the direction of Genco Shipping i.e., Genco Shipping and Diamyd Medical go up and down completely randomly.
Pair Corralation between Genco Shipping and Diamyd Medical
Assuming the 90 days trading horizon Genco Shipping Trading is expected to generate 0.42 times more return on investment than Diamyd Medical. However, Genco Shipping Trading is 2.38 times less risky than Diamyd Medical. It trades about 0.17 of its potential returns per unit of risk. Diamyd Medical AB is currently generating about 0.05 per unit of risk. If you would invest 1,404 in Genco Shipping Trading on September 2, 2024 and sell it today you would earn a total of 100.00 from holding Genco Shipping Trading or generate 7.12% 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. Diamyd Medical AB
Performance |
| Timeline |
| Genco Shipping Trading |
| Diamyd Medical AB |
Genco Shipping and Diamyd Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genco Shipping and Diamyd Medical
The main advantage of trading using opposite Genco Shipping and Diamyd Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genco Shipping position performs unexpectedly, Diamyd 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 Diamyd Medical will offset losses from the drop in Diamyd Medical's long position.| Genco Shipping vs. MGIC INVESTMENT | Genco Shipping vs. Apollo Investment Corp | Genco Shipping vs. KAUFMAN ET BROAD | Genco Shipping vs. Transportadora de Gas |
| Diamyd Medical vs. Superior Plus Corp | Diamyd Medical vs. NMI Holdings | Diamyd Medical vs. Origin Agritech | Diamyd Medical 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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