Correlation Between Geely Automobile and Bayerische Motoren
Can any of the company-specific risk be diversified away by investing in both Geely Automobile and Bayerische Motoren 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 Bayerische Motoren 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 Bayerische Motoren Werke, you can compare the effects of market volatilities on Geely Automobile and Bayerische Motoren 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 Bayerische Motoren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and Bayerische Motoren.
Diversification Opportunities for Geely Automobile and Bayerische Motoren
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Geely and Bayerische is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and Bayerische Motoren Werke in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayerische Motoren Werke 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 Bayerische Motoren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayerische Motoren Werke has no effect on the direction of Geely Automobile i.e., Geely Automobile and Bayerische Motoren go up and down completely randomly.
Pair Corralation between Geely Automobile and Bayerische Motoren
If you would invest 3,736 in Geely Automobile Holdings on November 30, 2024 and sell it today you would earn a total of 1,097 from holding Geely Automobile Holdings or generate 29.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Geely Automobile Holdings vs. Bayerische Motoren Werke
Performance |
| Timeline |
| Geely Automobile Holdings |
| Bayerische Motoren Werke |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Geely Automobile and Bayerische Motoren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and Bayerische Motoren
The main advantage of trading using opposite Geely Automobile and Bayerische Motoren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, Bayerische Motoren 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 Bayerische Motoren will offset losses from the drop in Bayerische Motoren's long position.| Geely Automobile vs. Great Wall Motor | Geely Automobile vs. Polestar Automotive Holding | Geely Automobile vs. Dowlais Group plc | Geely Automobile vs. BYD Company Limited |
| Bayerische Motoren vs. Mercedes Benz Group AG | Bayerische Motoren vs. Porsche Automobile Holding | Bayerische Motoren vs. Volkswagen AG 110 | Bayerische Motoren vs. Mercedes Benz Group AG |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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