Correlation Between Geely Automobile and Comba Telecom
Can any of the company-specific risk be diversified away by investing in both Geely Automobile and Comba Telecom 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 Comba Telecom 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 Comba Telecom Systems, you can compare the effects of market volatilities on Geely Automobile and Comba Telecom 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 Comba Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and Comba Telecom.
Diversification Opportunities for Geely Automobile and Comba Telecom
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Geely and Comba is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and Comba Telecom Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comba Telecom Systems 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 Comba Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comba Telecom Systems has no effect on the direction of Geely Automobile i.e., Geely Automobile and Comba Telecom go up and down completely randomly.
Pair Corralation between Geely Automobile and Comba Telecom
Assuming the 90 days horizon Geely Automobile Holdings is expected to generate 0.71 times more return on investment than Comba Telecom. However, Geely Automobile Holdings is 1.41 times less risky than Comba Telecom. It trades about -0.03 of its potential returns per unit of risk. Comba Telecom Systems is currently generating about -0.32 per unit of risk. If you would invest 179.00 in Geely Automobile Holdings on October 29, 2024 and sell it today you would lose (2.00) from holding Geely Automobile Holdings or give up 1.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Geely Automobile Holdings vs. Comba Telecom Systems
Performance |
| Timeline |
| Geely Automobile Holdings |
| Comba Telecom Systems |
Geely Automobile and Comba Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and Comba Telecom
The main advantage of trading using opposite Geely Automobile and Comba Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, Comba Telecom 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 Comba Telecom will offset losses from the drop in Comba Telecom's long position.| Geely Automobile vs. Cars Inc | Geely Automobile vs. DELTA AIR LINES | Geely Automobile vs. CHINA EDUCATION GROUP | Geely Automobile vs. EEDUCATION ALBERT AB |
| Comba Telecom vs. Mobilezone Holding AG | Comba Telecom vs. Ribbon Communications | Comba Telecom vs. Endeavour Mining PLC | Comba Telecom vs. Monument Mining Limited |
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 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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