Correlation Between First Hydrogen and Geely Automobile
Can any of the company-specific risk be diversified away by investing in both First Hydrogen 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 First Hydrogen and Geely Automobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Hydrogen Corp and Geely Automobile Holdings, you can compare the effects of market volatilities on First Hydrogen 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 First Hydrogen with a short position of Geely Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Hydrogen and Geely Automobile.
Diversification Opportunities for First Hydrogen and Geely Automobile
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between First and Geely is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding First Hydrogen Corp 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 First Hydrogen 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 First Hydrogen Corp 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 First Hydrogen i.e., First Hydrogen and Geely Automobile go up and down completely randomly.
Pair Corralation between First Hydrogen and Geely Automobile
Assuming the 90 days horizon First Hydrogen Corp is expected to under-perform the Geely Automobile. But the pink sheet apears to be less risky and, when comparing its historical volatility, First Hydrogen Corp is 1.02 times less risky than Geely Automobile. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Geely Automobile Holdings is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 108.00 in Geely Automobile Holdings on August 28, 2024 and sell it today you would earn a total of 60.00 from holding Geely Automobile Holdings or generate 55.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Hydrogen Corp vs. Geely Automobile Holdings
Performance |
| Timeline |
| First Hydrogen Corp |
| Geely Automobile Holdings |
First Hydrogen and Geely Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Hydrogen and Geely Automobile
The main advantage of trading using opposite First Hydrogen and Geely Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Hydrogen 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.| First Hydrogen vs. BAIC Motor | First Hydrogen vs. Zapp Electric Vehicles | First Hydrogen vs. Guangzhou Automobile Group | First Hydrogen vs. Phoenix Motor Common |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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