Correlation Between Geely Automobile and First Hydrogen

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Can any of the company-specific risk be diversified away by investing in both Geely Automobile and First Hydrogen 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 Geely Automobile and First Hydrogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geely Automobile Holdings and First Hydrogen Corp, you can compare the effects of market volatilities on Geely Automobile and First Hydrogen 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 Geely Automobile with a short position of First Hydrogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and First Hydrogen.

Diversification Opportunities for Geely Automobile and First Hydrogen

GeelyFirstDiversified AwayGeelyFirstDiversified Away100%
0.33
  Correlation Coefficient

Weak diversification

The 3 months correlation between Geely and First is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and First Hydrogen Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Hydrogen Corp and Geely Automobile 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 Geely Automobile Holdings are associated (or correlated) with First Hydrogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Hydrogen Corp has no effect on the direction of Geely Automobile i.e., Geely Automobile and First Hydrogen go up and down completely randomly.

Pair Corralation between Geely Automobile and First Hydrogen

Assuming the 90 days horizon Geely Automobile Holdings is expected to generate 0.61 times more return on investment than First Hydrogen. However, Geely Automobile Holdings is 1.64 times less risky than First Hydrogen. It trades about 0.12 of its potential returns per unit of risk. First Hydrogen Corp is currently generating about -0.08 per unit of risk. If you would invest  93.00  in Geely Automobile Holdings on November 26, 2024 and sell it today you would earn a total of  134.00  from holding Geely Automobile Holdings or generate 144.09% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy99.26%
ValuesDaily Returns

Geely Automobile Holdings  vs.  First Hydrogen Corp

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -50510152025
JavaScript chart by amCharts 3.21.15GELYF FHYDF
       Timeline  
Geely Automobile Holdings 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Geely Automobile Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Geely Automobile reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.61.71.81.922.12.22.3
First Hydrogen Corp 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in First Hydrogen Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, First Hydrogen reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.20.220.240.260.28

Geely Automobile and First Hydrogen Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.82-8.1-5.39-2.670.04812.895.778.6611.55 0.0150.0200.0250.030
JavaScript chart by amCharts 3.21.15GELYF FHYDF
       Returns  

Pair Trading with Geely Automobile and First Hydrogen

The main advantage of trading using opposite Geely Automobile and First Hydrogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, First Hydrogen 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 First Hydrogen will offset losses from the drop in First Hydrogen's long position.
The idea behind Geely Automobile Holdings and First Hydrogen Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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