Correlation Between Geely Automobile and Oxford Technology
Can any of the company-specific risk be diversified away by investing in both Geely Automobile and Oxford Technology 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 Oxford Technology 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 Oxford Technology 2, you can compare the effects of market volatilities on Geely Automobile and Oxford Technology 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 Oxford Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and Oxford Technology.
Diversification Opportunities for Geely Automobile and Oxford Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Geely and Oxford is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and Oxford Technology 2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Technology 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 Oxford Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Technology has no effect on the direction of Geely Automobile i.e., Geely Automobile and Oxford Technology go up and down completely randomly.
Pair Corralation between Geely Automobile and Oxford Technology
Assuming the 90 days trading horizon Geely Automobile Holdings is expected to generate 12.5 times more return on investment than Oxford Technology. However, Geely Automobile is 12.5 times more volatile than Oxford Technology 2. It trades about 0.11 of its potential returns per unit of risk. Oxford Technology 2 is currently generating about -0.12 per unit of risk. 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 | Flat |
| Strength | Insignificant |
| Accuracy | 98.59% |
| Values | Daily Returns |
Geely Automobile Holdings vs. Oxford Technology 2
Performance |
| Timeline |
| Geely Automobile Holdings |
| Oxford Technology |
Geely Automobile and Oxford Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and Oxford Technology
The main advantage of trading using opposite Geely Automobile and Oxford Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, Oxford Technology 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 Oxford Technology will offset losses from the drop in Oxford Technology'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 |
| Oxford Technology vs. Leroy Seafood Group | Oxford Technology vs. STMicroelectronics NV | Oxford Technology vs. Axfood AB | Oxford Technology vs. Molson Coors Beverage |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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