Correlation Between Genco Shipping and COPAUR MINERALS
Can any of the company-specific risk be diversified away by investing in both Genco Shipping and COPAUR MINERALS 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 COPAUR MINERALS 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 COPAUR MINERALS INC, you can compare the effects of market volatilities on Genco Shipping and COPAUR MINERALS 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 COPAUR MINERALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genco Shipping and COPAUR MINERALS.
Diversification Opportunities for Genco Shipping and COPAUR MINERALS
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Genco and COPAUR is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Genco Shipping Trading and COPAUR MINERALS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COPAUR MINERALS INC 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 COPAUR MINERALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COPAUR MINERALS INC has no effect on the direction of Genco Shipping i.e., Genco Shipping and COPAUR MINERALS go up and down completely randomly.
Pair Corralation between Genco Shipping and COPAUR MINERALS
Assuming the 90 days trading horizon Genco Shipping Trading is expected to under-perform the COPAUR MINERALS. But the stock apears to be less risky and, when comparing its historical volatility, Genco Shipping Trading is 2.87 times less risky than COPAUR MINERALS. The stock trades about -0.1 of its potential returns per unit of risk. The COPAUR MINERALS INC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 6.82 in COPAUR MINERALS INC on January 13, 2025 and sell it today you would lose (0.72) from holding COPAUR MINERALS INC or give up 10.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genco Shipping Trading vs. COPAUR MINERALS INC
Performance |
| Timeline |
| Genco Shipping Trading |
| COPAUR MINERALS INC |
Genco Shipping and COPAUR MINERALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genco Shipping and COPAUR MINERALS
The main advantage of trading using opposite Genco Shipping and COPAUR MINERALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genco Shipping position performs unexpectedly, COPAUR MINERALS 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 COPAUR MINERALS will offset losses from the drop in COPAUR MINERALS's long position.| Genco Shipping vs. Medical Properties Trust | Genco Shipping vs. Zijin Mining Group | Genco Shipping vs. Perseus Mining Limited | Genco Shipping vs. Genertec Universal Medical |
| COPAUR MINERALS vs. Rio Tinto Group | COPAUR MINERALS vs. Anglo American plc | COPAUR MINERALS vs. Mineral Resources Limited | COPAUR MINERALS vs. Liontown Resources Limited |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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