Correlation Between Geely Automobile and Silver Bullet
Can any of the company-specific risk be diversified away by investing in both Geely Automobile and Silver Bullet 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 Silver Bullet 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 Silver Bullet Data, you can compare the effects of market volatilities on Geely Automobile and Silver Bullet 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 Silver Bullet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and Silver Bullet.
Diversification Opportunities for Geely Automobile and Silver Bullet
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Geely and Silver is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and Silver Bullet Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Bullet Data 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 Silver Bullet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Bullet Data has no effect on the direction of Geely Automobile i.e., Geely Automobile and Silver Bullet go up and down completely randomly.
Pair Corralation between Geely Automobile and Silver Bullet
Assuming the 90 days trading horizon Geely Automobile Holdings is expected to generate 4.49 times more return on investment than Silver Bullet. However, Geely Automobile is 4.49 times more volatile than Silver Bullet Data. It trades about 0.11 of its potential returns per unit of risk. Silver Bullet Data is currently generating about 0.02 per unit of risk. If you would invest 1,500 in Geely Automobile Holdings on October 20, 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 | Very Weak |
| Accuracy | 98.59% |
| Values | Daily Returns |
Geely Automobile Holdings vs. Silver Bullet Data
Performance |
| Timeline |
| Geely Automobile Holdings |
| Silver Bullet Data |
Geely Automobile and Silver Bullet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and Silver Bullet
The main advantage of trading using opposite Geely Automobile and Silver Bullet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, Silver Bullet 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 Silver Bullet will offset losses from the drop in Silver Bullet's long position.| Geely Automobile vs. EJF Investments | Geely Automobile vs. STMicroelectronics NV | Geely Automobile vs. Compal Electronics GDR | Geely Automobile vs. Jupiter Green Investment |
| Silver Bullet vs. Rightmove PLC | Silver Bullet vs. Bioventix | Silver Bullet vs. VeriSign | Silver Bullet vs. Games Workshop Group |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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