Correlation Between Geely Automobile and AMP

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Can any of the company-specific risk be diversified away by investing in both Geely Automobile and AMP 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 AMP 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 AMP, you can compare the effects of market volatilities on Geely Automobile and AMP 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 AMP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and AMP.

Diversification Opportunities for Geely Automobile and AMP

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Geely and AMP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and AMP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMP 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 AMP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMP has no effect on the direction of Geely Automobile i.e., Geely Automobile and AMP go up and down completely randomly.

Pair Corralation between Geely Automobile and AMP

If you would invest  98.00  in Geely Automobile Holdings on October 25, 2024 and sell it today you would earn a total of  82.00  from holding Geely Automobile Holdings or generate 83.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.2%
ValuesDaily Returns

Geely Automobile Holdings  vs.  AMP

 Performance 
       Timeline  
Geely Automobile Holdings 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Geely Automobile Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Geely Automobile is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.
AMP 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
OK
Over the last 90 days AMP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, AMP is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Geely Automobile and AMP Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Geely Automobile and AMP

The main advantage of trading using opposite Geely Automobile and AMP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, AMP 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 AMP will offset losses from the drop in AMP's long position.
The idea behind Geely Automobile Holdings and AMP 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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