Correlation Between Geely Automobile and COMINTL BANK
Can any of the company-specific risk be diversified away by investing in both Geely Automobile and COMINTL BANK 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 COMINTL BANK 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 COMINTL BANK ADR1, you can compare the effects of market volatilities on Geely Automobile and COMINTL BANK 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 COMINTL BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and COMINTL BANK.
Diversification Opportunities for Geely Automobile and COMINTL BANK
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Geely and COMINTL is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and COMINTL BANK ADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMINTL BANK ADR1 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 COMINTL BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMINTL BANK ADR1 has no effect on the direction of Geely Automobile i.e., Geely Automobile and COMINTL BANK go up and down completely randomly.
Pair Corralation between Geely Automobile and COMINTL BANK
Assuming the 90 days horizon Geely Automobile Holdings is expected to generate 1.17 times more return on investment than COMINTL BANK. However, Geely Automobile is 1.17 times more volatile than COMINTL BANK ADR1. It trades about 0.1 of its potential returns per unit of risk. COMINTL BANK ADR1 is currently generating about 0.02 per unit of risk. If you would invest 81.00 in Geely Automobile Holdings on August 26, 2024 and sell it today you would earn a total of 76.00 from holding Geely Automobile Holdings or generate 93.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geely Automobile Holdings vs. COMINTL BANK ADR1
Performance |
| Timeline |
| Geely Automobile Holdings |
| COMINTL BANK ADR1 |
Geely Automobile and COMINTL BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and COMINTL BANK
The main advantage of trading using opposite Geely Automobile and COMINTL BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, COMINTL BANK 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 COMINTL BANK will offset losses from the drop in COMINTL BANK's long position.| Geely Automobile vs. Tesla Inc | Geely Automobile vs. Superior Plus Corp | Geely Automobile vs. NMI Holdings | Geely Automobile vs. Origin Agritech |
| COMINTL BANK vs. Superior Plus Corp | COMINTL BANK vs. NMI Holdings | COMINTL BANK vs. Origin Agritech | COMINTL BANK vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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