Correlation Between QURATE RETAIL and Genco Shipping
Can any of the company-specific risk be diversified away by investing in both QURATE RETAIL and Genco Shipping 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 QURATE RETAIL and Genco Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QURATE RETAIL INC and Genco Shipping Trading, you can compare the effects of market volatilities on QURATE RETAIL and Genco Shipping 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 QURATE RETAIL with a short position of Genco Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of QURATE RETAIL and Genco Shipping.
Diversification Opportunities for QURATE RETAIL and Genco Shipping
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between QURATE and Genco is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding QURATE RETAIL INC and Genco Shipping Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genco Shipping Trading and QURATE RETAIL 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 QURATE RETAIL INC are associated (or correlated) with Genco Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genco Shipping Trading has no effect on the direction of QURATE RETAIL i.e., QURATE RETAIL and Genco Shipping go up and down completely randomly.
Pair Corralation between QURATE RETAIL and Genco Shipping
Assuming the 90 days trading horizon QURATE RETAIL is expected to generate 3.72 times less return on investment than Genco Shipping. In addition to that, QURATE RETAIL is 1.99 times more volatile than Genco Shipping Trading. It trades about 0.0 of its total potential returns per unit of risk. Genco Shipping Trading is currently generating about 0.03 per unit of volatility. If you would invest 1,144 in Genco Shipping Trading on September 5, 2024 and sell it today you would earn a total of 361.00 from holding Genco Shipping Trading or generate 31.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
QURATE RETAIL INC vs. Genco Shipping Trading
Performance |
| Timeline |
| QURATE RETAIL INC |
| Genco Shipping Trading |
QURATE RETAIL and Genco Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QURATE RETAIL and Genco Shipping
The main advantage of trading using opposite QURATE RETAIL and Genco Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QURATE RETAIL position performs unexpectedly, Genco Shipping 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 Genco Shipping will offset losses from the drop in Genco Shipping's long position.| QURATE RETAIL vs. Lendlease Group | QURATE RETAIL vs. Verizon Communications | QURATE RETAIL vs. ALBIS LEASING AG | QURATE RETAIL vs. Air Transport Services |
| Genco Shipping vs. Wilh Wilhelmsen Holding | Genco Shipping vs. Superior Plus Corp | Genco Shipping vs. NMI Holdings | Genco Shipping vs. Origin Agritech |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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