Correlation Between SYLVANIA PLAT and GEELY AUTOMOBILE
Can any of the company-specific risk be diversified away by investing in both SYLVANIA PLAT 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 SYLVANIA PLAT and GEELY AUTOMOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SYLVANIA PLAT DL and GEELY AUTOMOBILE, you can compare the effects of market volatilities on SYLVANIA PLAT 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 SYLVANIA PLAT with a short position of GEELY AUTOMOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SYLVANIA PLAT and GEELY AUTOMOBILE.
Diversification Opportunities for SYLVANIA PLAT and GEELY AUTOMOBILE
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between SYLVANIA and GEELY is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding SYLVANIA PLAT DL and GEELY AUTOMOBILE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEELY AUTOMOBILE and SYLVANIA PLAT 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 SYLVANIA PLAT DL 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 SYLVANIA PLAT i.e., SYLVANIA PLAT and GEELY AUTOMOBILE go up and down completely randomly.
Pair Corralation between SYLVANIA PLAT and GEELY AUTOMOBILE
Assuming the 90 days horizon SYLVANIA PLAT DL is expected to under-perform the GEELY AUTOMOBILE. In addition to that, SYLVANIA PLAT is 1.13 times more volatile than GEELY AUTOMOBILE. It trades about -0.08 of its total potential returns per unit of risk. GEELY AUTOMOBILE is currently generating about -0.02 per unit of volatility. If you would invest 171.00 in GEELY AUTOMOBILE on September 3, 2024 and sell it today you would lose (3.00) from holding GEELY AUTOMOBILE or give up 1.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SYLVANIA PLAT DL vs. GEELY AUTOMOBILE
Performance |
| Timeline |
| SYLVANIA PLAT DL |
| GEELY AUTOMOBILE |
SYLVANIA PLAT and GEELY AUTOMOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SYLVANIA PLAT and GEELY AUTOMOBILE
The main advantage of trading using opposite SYLVANIA PLAT and GEELY AUTOMOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SYLVANIA PLAT 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.| SYLVANIA PLAT vs. AUSTEVOLL SEAFOOD | SYLVANIA PLAT vs. TYSON FOODS A | SYLVANIA PLAT vs. Premier Foods PLC | SYLVANIA PLAT vs. Performance Food Group |
| GEELY AUTOMOBILE vs. TOTAL GABON | GEELY AUTOMOBILE vs. Walgreens Boots Alliance | GEELY AUTOMOBILE vs. Peak Resources Limited |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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