Correlation Between Performance Shipping and Genco Shipping
Can any of the company-specific risk be diversified away by investing in both Performance Shipping 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 Performance Shipping and Genco Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Performance Shipping and Genco Shipping Trading, you can compare the effects of market volatilities on Performance Shipping 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 Performance Shipping with a short position of Genco Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Shipping and Genco Shipping.
Diversification Opportunities for Performance Shipping and Genco Shipping
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Performance and Genco is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Performance Shipping 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 Performance 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 Performance Shipping 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 Performance Shipping i.e., Performance Shipping and Genco Shipping go up and down completely randomly.
Pair Corralation between Performance Shipping and Genco Shipping
Given the investment horizon of 90 days Performance Shipping is expected to under-perform the Genco Shipping. But the stock apears to be less risky and, when comparing its historical volatility, Performance Shipping is 1.04 times less risky than Genco Shipping. The stock trades about -0.33 of its potential returns per unit of risk. The Genco Shipping Trading is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,545 in Genco Shipping Trading on August 30, 2024 and sell it today you would earn a total of 58.00 from holding Genco Shipping Trading or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Performance Shipping vs. Genco Shipping Trading
Performance |
| Timeline |
| Performance Shipping |
| Genco Shipping Trading |
Performance Shipping and Genco Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Performance Shipping and Genco Shipping
The main advantage of trading using opposite Performance Shipping and Genco Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performance Shipping 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.| Performance Shipping vs. Genco Shipping Trading | Performance Shipping vs. Golden Ocean Group | Performance Shipping vs. Star Bulk Carriers | Performance Shipping vs. Oceanpal |
| Genco Shipping vs. Star Bulk Carriers | Genco Shipping vs. Golden Ocean Group | Genco Shipping vs. Global Ship Lease | Genco Shipping vs. Danaos |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world |