Correlation Between AUSNUTRIA DAIRY and Geely Automobile
Can any of the company-specific risk be diversified away by investing in both AUSNUTRIA DAIRY 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 AUSNUTRIA DAIRY and Geely Automobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AUSNUTRIA DAIRY and Geely Automobile Holdings, you can compare the effects of market volatilities on AUSNUTRIA DAIRY 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 AUSNUTRIA DAIRY with a short position of Geely Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUSNUTRIA DAIRY and Geely Automobile.
Diversification Opportunities for AUSNUTRIA DAIRY and Geely Automobile
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AUSNUTRIA and Geely is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding AUSNUTRIA DAIRY and Geely Automobile Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geely Automobile Holdings and AUSNUTRIA DAIRY 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 AUSNUTRIA DAIRY 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 Holdings has no effect on the direction of AUSNUTRIA DAIRY i.e., AUSNUTRIA DAIRY and Geely Automobile go up and down completely randomly.
Pair Corralation between AUSNUTRIA DAIRY and Geely Automobile
If you would invest 25.00 in AUSNUTRIA DAIRY on August 31, 2024 and sell it today you would earn a total of 0.00 from holding AUSNUTRIA DAIRY or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUSNUTRIA DAIRY vs. Geely Automobile Holdings
Performance |
| Timeline |
| AUSNUTRIA DAIRY |
| Geely Automobile Holdings |
AUSNUTRIA DAIRY and Geely Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUSNUTRIA DAIRY and Geely Automobile
The main advantage of trading using opposite AUSNUTRIA DAIRY and Geely Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUSNUTRIA DAIRY 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.| AUSNUTRIA DAIRY vs. SIVERS SEMICONDUCTORS AB | AUSNUTRIA DAIRY vs. Darden Restaurants | AUSNUTRIA DAIRY vs. Reliance Steel Aluminum | AUSNUTRIA DAIRY vs. Q2M Managementberatung AG |
| Geely Automobile vs. NORWEGIAN AIR SHUT | Geely Automobile vs. Penta Ocean Construction Co | Geely Automobile vs. DAIRY FARM INTL | Geely Automobile vs. Ryanair Holdings plc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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