Correlation Between CLOVER HEALTH and GEELY AUTOMOBILE
Can any of the company-specific risk be diversified away by investing in both CLOVER HEALTH 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 CLOVER HEALTH and GEELY AUTOMOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CLOVER HEALTH INV and GEELY AUTOMOBILE, you can compare the effects of market volatilities on CLOVER HEALTH 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 CLOVER HEALTH with a short position of GEELY AUTOMOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CLOVER HEALTH and GEELY AUTOMOBILE.
Diversification Opportunities for CLOVER HEALTH and GEELY AUTOMOBILE
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between CLOVER and GEELY is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding CLOVER HEALTH INV and GEELY AUTOMOBILE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEELY AUTOMOBILE and CLOVER HEALTH 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 CLOVER HEALTH INV 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 CLOVER HEALTH i.e., CLOVER HEALTH and GEELY AUTOMOBILE go up and down completely randomly.
Pair Corralation between CLOVER HEALTH and GEELY AUTOMOBILE
Assuming the 90 days horizon CLOVER HEALTH INV is expected to generate 1.89 times more return on investment than GEELY AUTOMOBILE. However, CLOVER HEALTH is 1.89 times more volatile than GEELY AUTOMOBILE. It trades about 0.47 of its potential returns per unit of risk. GEELY AUTOMOBILE is currently generating about 0.12 per unit of risk. If you would invest 314.00 in CLOVER HEALTH INV on November 5, 2024 and sell it today you would earn a total of 108.00 from holding CLOVER HEALTH INV or generate 34.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CLOVER HEALTH INV vs. GEELY AUTOMOBILE
Performance |
| Timeline |
| CLOVER HEALTH INV |
| GEELY AUTOMOBILE |
CLOVER HEALTH and GEELY AUTOMOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CLOVER HEALTH and GEELY AUTOMOBILE
The main advantage of trading using opposite CLOVER HEALTH and GEELY AUTOMOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CLOVER HEALTH 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.| CLOVER HEALTH vs. Pebblebrook Hotel Trust | CLOVER HEALTH vs. PPHE HOTEL GROUP | CLOVER HEALTH vs. Xenia Hotels Resorts | CLOVER HEALTH vs. COVIVIO HOTELS INH |
| GEELY AUTOMOBILE vs. Apple Inc | GEELY AUTOMOBILE vs. Apple Inc | GEELY AUTOMOBILE vs. Apple Inc | GEELY AUTOMOBILE vs. Apple Inc |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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