Correlation Between Genco Shipping and Packagingof America

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

Diversification Opportunities for Genco Shipping and Packagingof America

0.29

Correlation Coefficient

Genco Shipping  Packagingof America

Modest diversification

The 3 months correlation between Genco and Packagingof is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Genco Shipping Trading and Packaging of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Packagingof America 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 Packagingof America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Packagingof America has no effect on the direction of Genco Shipping i.e., Genco Shipping and Packagingof America go up and down completely randomly.

Pair Corralation between Genco Shipping and Packagingof America

Assuming the 90 days trading horizon Genco Shipping Trading is expected to generate 1.01 times more return on investment than Packagingof America. However, Genco Shipping is 1.01 times more volatile than Packaging of. It trades about 0.15 of its potential returns per unit of risk. Packaging of is currently generating about 0.06 per unit of risk. If you would invest  1,094  in Genco Shipping Trading on April 24, 2025 and sell it today you would earn a total of  187.00  from holding Genco Shipping Trading or generate 17.09% 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.  Packaging of

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 12 (%) 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.

Packagingof America

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Packaging of are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Packagingof America may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Genco Shipping and Packagingof America

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

The idea behind Genco Shipping Trading and Packaging of 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.

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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..