Correlation Between Genco Shipping and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Genco Shipping and GRIFFIN MINING 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 GRIFFIN MINING 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 GRIFFIN MINING LTD, you can compare the effects of market volatilities on Genco Shipping and GRIFFIN MINING 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 GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genco Shipping and GRIFFIN MINING.
Diversification Opportunities for Genco Shipping and GRIFFIN MINING
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Genco and GRIFFIN is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Genco Shipping Trading and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD 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 GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of Genco Shipping i.e., Genco Shipping and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Genco Shipping and GRIFFIN MINING
Assuming the 90 days trading horizon Genco Shipping is expected to generate 1.74 times less return on investment than GRIFFIN MINING. In addition to that, Genco Shipping is 1.26 times more volatile than GRIFFIN MINING LTD. It trades about 0.03 of its total potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.07 per unit of volatility. If you would invest 86.00 in GRIFFIN MINING LTD on September 4, 2024 and sell it today you would earn a total of 85.00 from holding GRIFFIN MINING LTD or generate 98.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genco Shipping Trading vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| Genco Shipping Trading |
| GRIFFIN MINING LTD |
Genco Shipping and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genco Shipping and GRIFFIN MINING
The main advantage of trading using opposite Genco Shipping and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genco Shipping position performs unexpectedly, GRIFFIN MINING 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 GRIFFIN MINING will offset losses from the drop in GRIFFIN MINING's long position.| Genco Shipping vs. BW LPG Limited | Genco Shipping vs. Wilh Wilhelmsen Holding | Genco Shipping vs. Superior Plus Corp | Genco Shipping vs. NMI Holdings |
| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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