Correlation Between Genco Shipping and Eidesvik Offshore
Can any of the company-specific risk be diversified away by investing in both Genco Shipping and Eidesvik Offshore 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 Eidesvik Offshore 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 Eidesvik Offshore ASA, you can compare the effects of market volatilities on Genco Shipping and Eidesvik Offshore 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 Eidesvik Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genco Shipping and Eidesvik Offshore.
Diversification Opportunities for Genco Shipping and Eidesvik Offshore
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Genco and Eidesvik is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Genco Shipping Trading and Eidesvik Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eidesvik Offshore ASA 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 Eidesvik Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eidesvik Offshore ASA has no effect on the direction of Genco Shipping i.e., Genco Shipping and Eidesvik Offshore go up and down completely randomly.
Pair Corralation between Genco Shipping and Eidesvik Offshore
Assuming the 90 days trading horizon Genco Shipping Trading is expected to generate 1.14 times more return on investment than Eidesvik Offshore. However, Genco Shipping is 1.14 times more volatile than Eidesvik Offshore ASA. It trades about 0.19 of its potential returns per unit of risk. Eidesvik Offshore ASA is currently generating about -0.09 per unit of risk. If you would invest 1,393 in Genco Shipping Trading on September 1, 2024 and sell it today you would earn a total of 111.00 from holding Genco Shipping Trading or generate 7.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genco Shipping Trading vs. Eidesvik Offshore ASA
Performance |
| Timeline |
| Genco Shipping Trading |
| Eidesvik Offshore ASA |
Genco Shipping and Eidesvik Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genco Shipping and Eidesvik Offshore
The main advantage of trading using opposite Genco Shipping and Eidesvik Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genco Shipping position performs unexpectedly, Eidesvik Offshore 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 Eidesvik Offshore will offset losses from the drop in Eidesvik Offshore's long position.| Genco Shipping vs. Clarkson PLC | Genco Shipping vs. Wilh Wilhelmsen Holding | Genco Shipping vs. Superior Plus Corp | Genco Shipping vs. NMI Holdings |
| Eidesvik Offshore vs. BURLINGTON STORES | Eidesvik Offshore vs. Burlington Stores | Eidesvik Offshore vs. BJs Wholesale Club | Eidesvik Offshore vs. RETAIL FOOD GROUP |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |