Correlation Between Genco Shipping and Intuit

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

Diversification Opportunities for Genco Shipping and Intuit

0.03

Correlation Coefficient

Genco Shipping  Intuit

Significant diversification

The 3 months correlation between Genco and Intuit is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Genco Shipping Trading and Intuit Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuit Inc 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 Intuit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuit Inc has no effect on the direction of Genco Shipping i.e., Genco Shipping and Intuit go up and down completely randomly.

Pair Corralation between Genco Shipping and Intuit

Assuming the 90 days trading horizon Genco Shipping is expected to generate 1.12 times less return on investment than Intuit. In addition to that, Genco Shipping is 1.26 times more volatile than Intuit Inc. It trades about 0.03 of its total potential returns per unit of risk. Intuit Inc is currently generating about 0.04 per unit of volatility. If you would invest  50,744  in Intuit Inc on October 4, 2024 and sell it today you would earn a total of  10,616  from holding Intuit Inc or generate 20.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Genco Shipping Trading  vs.  Intuit Inc

Genco Shipping Trading

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genco Shipping Trading has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Intuit Inc

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intuit Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Intuit may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Genco Shipping and Intuit

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

The idea behind Genco Shipping Trading and Intuit Inc 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.