Correlation Between Rollins and Genco Shipping
Can any of the company-specific risk be diversified away by investing in both Rollins 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 Rollins and Genco Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rollins and Genco Shipping Trading, you can compare the effects of market volatilities on Rollins 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 Rollins with a short position of Genco Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rollins and Genco Shipping.
Diversification Opportunities for Rollins and Genco Shipping
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rollins and Genco is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Rollins 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 Rollins 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 Rollins 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 Rollins i.e., Rollins and Genco Shipping go up and down completely randomly.
Pair Corralation between Rollins and Genco Shipping
Assuming the 90 days horizon Rollins is expected to generate 0.77 times more return on investment than Genco Shipping. However, Rollins is 1.3 times less risky than Genco Shipping. It trades about 0.05 of its potential returns per unit of risk. Genco Shipping Trading is currently generating about -0.07 per unit of risk. If you would invest 4,292 in Rollins on September 3, 2024 and sell it today you would earn a total of 467.00 from holding Rollins or generate 10.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rollins vs. Genco Shipping Trading
Performance |
| Timeline |
| Rollins |
| Genco Shipping Trading |
Rollins and Genco Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rollins and Genco Shipping
The main advantage of trading using opposite Rollins and Genco Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rollins 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.| Rollins vs. Genco Shipping Trading | Rollins vs. Strategic Investments AS | Rollins vs. Japan Asia Investment | Rollins vs. TITANIUM TRANSPORTGROUP |
| Genco Shipping vs. GRIFFIN MINING LTD | Genco Shipping vs. Retail Estates NV | Genco Shipping vs. Evolution Mining Limited | Genco Shipping vs. National Retail Properties |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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