Correlation Between Geely Automobile and Uniper SE
Can any of the company-specific risk be diversified away by investing in both Geely Automobile and Uniper SE 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 Uniper SE 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 Uniper SE, you can compare the effects of market volatilities on Geely Automobile and Uniper SE 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 Uniper SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and Uniper SE.
Diversification Opportunities for Geely Automobile and Uniper SE
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Geely and Uniper is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and Uniper SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniper SE 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 Uniper SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniper SE has no effect on the direction of Geely Automobile i.e., Geely Automobile and Uniper SE go up and down completely randomly.
Pair Corralation between Geely Automobile and Uniper SE
Assuming the 90 days trading horizon Geely Automobile is expected to generate 6.08 times less return on investment than Uniper SE. In addition to that, Geely Automobile is 1.77 times more volatile than Uniper SE. It trades about 0.02 of its total potential returns per unit of risk. Uniper SE is currently generating about 0.17 per unit of volatility. If you would invest 4,154 in Uniper SE on November 4, 2024 and sell it today you would earn a total of 263.00 from holding Uniper SE or generate 6.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Geely Automobile Holdings vs. Uniper SE
Performance |
| Timeline |
| Geely Automobile Holdings |
| Uniper SE |
Geely Automobile and Uniper SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and Uniper SE
The main advantage of trading using opposite Geely Automobile and Uniper SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, Uniper SE 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 Uniper SE will offset losses from the drop in Uniper SE's long position.| Geely Automobile vs. United States Steel | Geely Automobile vs. XLMedia PLC | Geely Automobile vs. Foresight Environmental Infrastructure | Geely Automobile vs. Westlake Chemical Corp |
| Uniper SE vs. Software Circle plc | Uniper SE vs. Micron Technology | Uniper SE vs. Sabre Insurance Group | Uniper SE vs. Darden Restaurants |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |