Correlation Between Genco Shipping and ASML HOLDING

Can any of the company-specific risk be diversified away by investing in both Genco Shipping and ASML HOLDING 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 ASML HOLDING 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 ASML HOLDING NY, you can compare the effects of market volatilities on Genco Shipping and ASML HOLDING 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 ASML HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genco Shipping and ASML HOLDING.

Diversification Opportunities for Genco Shipping and ASML HOLDING

0.39

Correlation Coefficient

Genco Shipping  ASML HOLDING

Weak diversification

The 3 months correlation between Genco and ASML is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Genco Shipping Trading and ASML HOLDING NY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASML HOLDING NY 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 ASML HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASML HOLDING NY has no effect on the direction of Genco Shipping i.e., Genco Shipping and ASML HOLDING go up and down completely randomly.

Pair Corralation between Genco Shipping and ASML HOLDING

Assuming the 90 days trading horizon Genco Shipping Trading is expected to generate 0.7 times more return on investment than ASML HOLDING. However, Genco Shipping Trading is 1.43 times less risky than ASML HOLDING. It trades about 0.18 of its potential returns per unit of risk. ASML HOLDING NY is currently generating about 0.08 per unit of risk. If you would invest  1,065  in Genco Shipping Trading on April 23, 2025 and sell it today you would earn a total of  219.00  from holding Genco Shipping Trading or generate 20.56% 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.  ASML HOLDING NY

Genco Shipping Trading

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Genco Shipping Trading are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Genco Shipping reported solid returns over the last few months and may actually be approaching a breakup point.

ASML HOLDING NY

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ASML HOLDING NY are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, ASML HOLDING may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Genco Shipping and ASML HOLDING

The main advantage of trading using opposite Genco Shipping and ASML HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genco Shipping position performs unexpectedly, ASML HOLDING 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 ASML HOLDING will offset losses from the drop in ASML HOLDING's long position.

The idea behind Genco Shipping Trading and ASML HOLDING NY pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.