Correlation Between Genco Shipping and FAST RETAIL
Can any of the company-specific risk be diversified away by investing in both Genco Shipping and FAST RETAIL 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 FAST RETAIL 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 FAST RETAIL ADR, you can compare the effects of market volatilities on Genco Shipping and FAST RETAIL 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 FAST RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genco Shipping and FAST RETAIL.
Diversification Opportunities for Genco Shipping and FAST RETAIL
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Genco and FAST is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Genco Shipping Trading and FAST RETAIL ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAST RETAIL ADR 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 FAST RETAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAST RETAIL ADR has no effect on the direction of Genco Shipping i.e., Genco Shipping and FAST RETAIL go up and down completely randomly.
Pair Corralation between Genco Shipping and FAST RETAIL
Assuming the 90 days trading horizon Genco Shipping is expected to generate 1.29 times less return on investment than FAST RETAIL. In addition to that, Genco Shipping is 1.44 times more volatile than FAST RETAIL ADR. It trades about 0.03 of its total potential returns per unit of risk. FAST RETAIL ADR is currently generating about 0.06 per unit of volatility. If you would invest 1,863 in FAST RETAIL ADR on September 5, 2024 and sell it today you would earn a total of 1,257 from holding FAST RETAIL ADR or generate 67.47% 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. FAST RETAIL ADR
Performance |
| Timeline |
| Genco Shipping Trading |
| FAST RETAIL ADR |
Genco Shipping and FAST RETAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genco Shipping and FAST RETAIL
The main advantage of trading using opposite Genco Shipping and FAST RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genco Shipping position performs unexpectedly, FAST RETAIL 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 FAST RETAIL will offset losses from the drop in FAST RETAIL's long position.| Genco Shipping vs. Wilh Wilhelmsen Holding | Genco Shipping vs. Superior Plus Corp | Genco Shipping vs. NMI Holdings | Genco Shipping vs. Origin Agritech |
| FAST RETAIL vs. CARSALESCOM | FAST RETAIL vs. Meiko Electronics Co | FAST RETAIL vs. ARROW ELECTRONICS | FAST RETAIL vs. UMC Electronics Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |