Correlation Between MOVIE GAMES and GEELY AUTOMOBILE
Can any of the company-specific risk be diversified away by investing in both MOVIE GAMES and GEELY AUTOMOBILE 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 MOVIE GAMES and GEELY AUTOMOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOVIE GAMES SA and GEELY AUTOMOBILE, you can compare the effects of market volatilities on MOVIE GAMES and GEELY AUTOMOBILE 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 MOVIE GAMES with a short position of GEELY AUTOMOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOVIE GAMES and GEELY AUTOMOBILE.
Diversification Opportunities for MOVIE GAMES and GEELY AUTOMOBILE
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MOVIE and GEELY is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA and GEELY AUTOMOBILE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEELY AUTOMOBILE and MOVIE GAMES 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 MOVIE GAMES SA are associated (or correlated) with GEELY AUTOMOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEELY AUTOMOBILE has no effect on the direction of MOVIE GAMES i.e., MOVIE GAMES and GEELY AUTOMOBILE go up and down completely randomly.
Pair Corralation between MOVIE GAMES and GEELY AUTOMOBILE
Assuming the 90 days horizon MOVIE GAMES is expected to generate 6.12 times less return on investment than GEELY AUTOMOBILE. In addition to that, MOVIE GAMES is 1.27 times more volatile than GEELY AUTOMOBILE. It trades about 0.01 of its total potential returns per unit of risk. GEELY AUTOMOBILE is currently generating about 0.09 per unit of volatility. If you would invest 149.00 in GEELY AUTOMOBILE on October 14, 2024 and sell it today you would earn a total of 22.00 from holding GEELY AUTOMOBILE or generate 14.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOVIE GAMES SA vs. GEELY AUTOMOBILE
Performance |
| Timeline |
| MOVIE GAMES SA |
| GEELY AUTOMOBILE |
MOVIE GAMES and GEELY AUTOMOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOVIE GAMES and GEELY AUTOMOBILE
The main advantage of trading using opposite MOVIE GAMES and GEELY AUTOMOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOVIE GAMES position performs unexpectedly, GEELY AUTOMOBILE 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 GEELY AUTOMOBILE will offset losses from the drop in GEELY AUTOMOBILE's long position.| MOVIE GAMES vs. Singapore Telecommunications Limited | MOVIE GAMES vs. Shenandoah Telecommunications | MOVIE GAMES vs. Cleanaway Waste Management | MOVIE GAMES vs. ecotel communication ag |
| GEELY AUTOMOBILE vs. BROADWIND ENRGY | GEELY AUTOMOBILE vs. Gaztransport Technigaz SA | GEELY AUTOMOBILE vs. GigaMedia | GEELY AUTOMOBILE vs. MOVIE GAMES 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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