Correlation Between Geely Automobile and AMP
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 Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.2% |
Values | Daily Returns |
Geely Automobile Holdings vs. AMP
Performance |
Timeline |
Geely Automobile Holdings |
AMP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
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.Geely Automobile vs. Air New Zealand | Geely Automobile vs. Pentair plc | Geely Automobile vs. CHINA SOUTHN AIR H | Geely Automobile vs. Spirent Communications plc |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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