Correlation Between Parkson Retail and Genco Shipping

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Can any of the company-specific risk be diversified away by investing in both Parkson 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 Parkson 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 Parkson Retail Group and Genco Shipping Trading, you can compare the effects of market volatilities on Parkson 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 Parkson Retail with a short position of Genco Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Parkson Retail and Genco Shipping.

Diversification Opportunities for Parkson Retail and Genco Shipping

-0.06
  Correlation Coefficient

Good diversification

The 3 months correlation between Parkson and Genco is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Parkson Retail Group 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 Parkson 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 Parkson Retail Group 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 Parkson Retail i.e., Parkson Retail and Genco Shipping go up and down completely randomly.

Pair Corralation between Parkson Retail and Genco Shipping

Assuming the 90 days trading horizon Parkson Retail is expected to generate 3.04 times less return on investment than Genco Shipping. In addition to that, Parkson Retail is 2.59 times more volatile than Genco Shipping Trading. It trades about 0.02 of its total potential returns per unit of risk. Genco Shipping Trading is currently generating about 0.18 per unit of volatility. If you would invest  1,065  in Genco Shipping Trading on April 23, 2025 and sell it today you would earn a total of  216.00  from holding Genco Shipping Trading or generate 20.28% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Parkson Retail Group  vs.  Genco Shipping Trading

 Performance 
       Timeline  
Parkson Retail Group 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Parkson Retail Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, Parkson Retail may actually be approaching a critical reversion point that can send shares even higher in August 2025.
Genco Shipping Trading 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Genco Shipping Trading are ranked lower than 13 (%) 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.

Parkson Retail and Genco Shipping Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Parkson Retail and Genco Shipping

The main advantage of trading using opposite Parkson Retail and Genco Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parkson 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.
The idea behind Parkson Retail Group and Genco Shipping Trading 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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