GEX Correlations

GEX Index   2,376  14.35  0.60%   
The current 90-days correlation between GEX and Geely Automobile Holdings is 0.03 (i.e., Significant diversification). The correlation of GEX is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
The ability to find closely correlated positions to GEX could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace GEX when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back GEX - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling GEX to buy it.

Moving together with GEX Index

  0.68AMZN Amazon Inc Aggressive PushPairCorr

Moving against GEX Index

  0.67KO Coca ColaPairCorr
  0.53931142CH4 WALMART INC 5875PairCorr
  0.52BMBOY Grupo Bimbo SABPairCorr
  0.39GLAPF Glanbia plc Earnings Call This WeekPairCorr
  0.37MTGRF Mount Gibson IronPairCorr
  0.36PPCLY PPC Ltd ADRPairCorr
  0.31FTEG For The EarthPairCorr
  0.36RMTCX Columbia Minnesota TaxPairCorr
  0.34EPIBX Europac InternationalPairCorr

Related Correlations Analysis


Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

CGNMFLINC
ATGEASUR
LINCATGE
CGNMFATGE
LINCASUR
CGNMFASUR
  

High negative correlations

GELHYCGNMF
GELHYLINC
LINCEDTK
GELHYEDTK
GELHYASUR
GELHYATGE

Risk-Adjusted Indicators

There is a big difference between GEX Index performing well and GEX Index doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze GEX's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

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GEX Distribution of Returns

   Predicted Return Density   
       Returns  
GEX's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how gex index's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a GEX Price Volatility?

Several factors can influence a index's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract investor attention to the company. This positive attention may impact the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

GEX Against Global Markets

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