Correlation Between Geely Automobile and Walmart
Can any of the company-specific risk be diversified away by investing in both Geely Automobile and Walmart 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 Geely Automobile and Walmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geely Automobile Holdings and Walmart, you can compare the effects of market volatilities on Geely Automobile and Walmart 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 Geely Automobile with a short position of Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and Walmart.
Diversification Opportunities for Geely Automobile and Walmart
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Geely and Walmart is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart and Geely Automobile 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 Geely Automobile Holdings are associated (or correlated) with Walmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walmart has no effect on the direction of Geely Automobile i.e., Geely Automobile and Walmart go up and down completely randomly.
Pair Corralation between Geely Automobile and Walmart
If you would invest 1,500 in Geely Automobile Holdings on October 30, 2024 and sell it today you would earn a total of 0.00 from holding Geely Automobile Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geely Automobile Holdings vs. Walmart
Performance |
| Timeline |
| Geely Automobile Holdings |
| Walmart |
Geely Automobile and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and Walmart
The main advantage of trading using opposite Geely Automobile and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, Walmart 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 Walmart will offset losses from the drop in Walmart's long position.| Geely Automobile vs. Dairy Farm International | Geely Automobile vs. GlobalData PLC | Geely Automobile vs. Batm Advanced Communications | Geely Automobile vs. Take Two Interactive Software |
| Walmart vs. LBG Media PLC | Walmart vs. Centaur Media | Walmart vs. Intermediate Capital Group | Walmart vs. Seche Environnement SA |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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