Correlation Between Geely Automobile and Mobilezone Holding
Can any of the company-specific risk be diversified away by investing in both Geely Automobile and Mobilezone Holding 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 Mobilezone Holding 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 mobilezone holding AG, you can compare the effects of market volatilities on Geely Automobile and Mobilezone Holding 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 Mobilezone Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and Mobilezone Holding.
Diversification Opportunities for Geely Automobile and Mobilezone Holding
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Geely and Mobilezone is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and mobilezone holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone holding 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 Mobilezone Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mobilezone holding has no effect on the direction of Geely Automobile i.e., Geely Automobile and Mobilezone Holding go up and down completely randomly.
Pair Corralation between Geely Automobile and Mobilezone Holding
Assuming the 90 days trading horizon Geely Automobile is expected to generate 7.04 times less return on investment than Mobilezone Holding. In addition to that, Geely Automobile is 2.04 times more volatile than mobilezone holding AG. It trades about 0.02 of its total potential returns per unit of risk. mobilezone holding AG is currently generating about 0.22 per unit of volatility. If you would invest 1,006 in mobilezone holding AG on October 21, 2024 and sell it today you would earn a total of 62.00 from holding mobilezone holding AG or generate 6.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geely Automobile Holdings vs. mobilezone holding AG
Performance |
| Timeline |
| Geely Automobile Holdings |
| mobilezone holding |
Geely Automobile and Mobilezone Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and Mobilezone Holding
The main advantage of trading using opposite Geely Automobile and Mobilezone Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, Mobilezone Holding 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 Mobilezone Holding will offset losses from the drop in Mobilezone Holding's long position.| Geely Automobile vs. Solstad Offshore ASA | Geely Automobile vs. Young Cos Brewery | Geely Automobile vs. Verizon Communications | Geely Automobile vs. Gamma Communications PLC |
| Mobilezone Holding vs. Verizon Communications | Mobilezone Holding vs. Batm Advanced Communications | Mobilezone Holding vs. Zoom Video Communications | Mobilezone Holding vs. Westlake Chemical Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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