Correlation Between Genco Shipping and URBAN OUTFITTERS
Can any of the company-specific risk be diversified away by investing in both Genco Shipping and URBAN OUTFITTERS 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 URBAN OUTFITTERS 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 URBAN OUTFITTERS, you can compare the effects of market volatilities on Genco Shipping and URBAN OUTFITTERS 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 URBAN OUTFITTERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genco Shipping and URBAN OUTFITTERS.
Diversification Opportunities for Genco Shipping and URBAN OUTFITTERS
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Genco and URBAN is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Genco Shipping Trading and URBAN OUTFITTERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on URBAN OUTFITTERS 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 URBAN OUTFITTERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of URBAN OUTFITTERS has no effect on the direction of Genco Shipping i.e., Genco Shipping and URBAN OUTFITTERS go up and down completely randomly.
Pair Corralation between Genco Shipping and URBAN OUTFITTERS
Assuming the 90 days trading horizon Genco Shipping is expected to generate 4.49 times less return on investment than URBAN OUTFITTERS. But when comparing it to its historical volatility, Genco Shipping Trading is 2.3 times less risky than URBAN OUTFITTERS. It trades about 0.17 of its potential returns per unit of risk. URBAN OUTFITTERS is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 3,300 in URBAN OUTFITTERS on September 2, 2024 and sell it today you would earn a total of 1,180 from holding URBAN OUTFITTERS or generate 35.76% 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. URBAN OUTFITTERS
Performance |
| Timeline |
| Genco Shipping Trading |
| URBAN OUTFITTERS |
Genco Shipping and URBAN OUTFITTERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genco Shipping and URBAN OUTFITTERS
The main advantage of trading using opposite Genco Shipping and URBAN OUTFITTERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genco Shipping position performs unexpectedly, URBAN OUTFITTERS 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 URBAN OUTFITTERS will offset losses from the drop in URBAN OUTFITTERS's long position.| Genco Shipping vs. MGIC INVESTMENT | Genco Shipping vs. Apollo Investment Corp | Genco Shipping vs. KAUFMAN ET BROAD | Genco Shipping vs. Transportadora de Gas |
| URBAN OUTFITTERS vs. SIVERS SEMICONDUCTORS AB | URBAN OUTFITTERS vs. Darden Restaurants | URBAN OUTFITTERS vs. Reliance Steel Aluminum | URBAN OUTFITTERS vs. Q2M Managementberatung AG |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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