Correlation Between Genco Shipping and SEI INVESTMENTS
Can any of the company-specific risk be diversified away by investing in both Genco Shipping and SEI INVESTMENTS 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 SEI INVESTMENTS 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 SEI INVESTMENTS, you can compare the effects of market volatilities on Genco Shipping and SEI INVESTMENTS 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 SEI INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genco Shipping and SEI INVESTMENTS.
Diversification Opportunities for Genco Shipping and SEI INVESTMENTS
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Genco and SEI is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Genco Shipping Trading and SEI INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI INVESTMENTS 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 SEI INVESTMENTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEI INVESTMENTS has no effect on the direction of Genco Shipping i.e., Genco Shipping and SEI INVESTMENTS go up and down completely randomly.
Pair Corralation between Genco Shipping and SEI INVESTMENTS
Assuming the 90 days trading horizon Genco Shipping Trading is expected to generate 1.13 times more return on investment than SEI INVESTMENTS. However, Genco Shipping is 1.13 times more volatile than SEI INVESTMENTS. It trades about 0.35 of its potential returns per unit of risk. SEI INVESTMENTS is currently generating about 0.3 per unit of risk. If you would invest 1,384 in Genco Shipping Trading on August 27, 2024 and sell it today you would earn a total of 189.00 from holding Genco Shipping Trading or generate 13.66% 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. SEI INVESTMENTS
Performance |
| Timeline |
| Genco Shipping Trading |
| SEI INVESTMENTS |
Genco Shipping and SEI INVESTMENTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genco Shipping and SEI INVESTMENTS
The main advantage of trading using opposite Genco Shipping and SEI INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genco Shipping position performs unexpectedly, SEI INVESTMENTS 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 SEI INVESTMENTS will offset losses from the drop in SEI INVESTMENTS's long position.| Genco Shipping vs. GUARDANT HEALTH CL | Genco Shipping vs. Natural Health Trends | Genco Shipping vs. YOOMA WELLNESS INC | Genco Shipping vs. EPSILON HEALTHCARE LTD |
| SEI INVESTMENTS vs. Apple Inc | SEI INVESTMENTS vs. Apple Inc | SEI INVESTMENTS vs. Apple Inc | SEI INVESTMENTS vs. Microsoft |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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