Correlation Between Geely Automobile and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both Geely Automobile and JIAHUA STORES 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 JIAHUA STORES 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 JIAHUA STORES, you can compare the effects of market volatilities on Geely Automobile and JIAHUA STORES 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 JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and JIAHUA STORES.
Diversification Opportunities for Geely Automobile and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Geely and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES 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 JIAHUA STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIAHUA STORES has no effect on the direction of Geely Automobile i.e., Geely Automobile and JIAHUA STORES go up and down completely randomly.
Pair Corralation between Geely Automobile and JIAHUA STORES
If you would invest 99.00 in Geely Automobile Holdings on August 30, 2024 and sell it today you would earn a total of 59.00 from holding Geely Automobile Holdings or generate 59.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geely Automobile Holdings vs. JIAHUA STORES
Performance |
| Timeline |
| Geely Automobile Holdings |
| JIAHUA STORES |
Geely Automobile and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and JIAHUA STORES
The main advantage of trading using opposite Geely Automobile and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, JIAHUA STORES 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 JIAHUA STORES will offset losses from the drop in JIAHUA STORES's long position.| Geely Automobile vs. STORE ELECTRONIC | Geely Automobile vs. BYD ELECTRONIC | Geely Automobile vs. Arrow Electronics | Geely Automobile vs. PennantPark Investment |
| JIAHUA STORES vs. ATRESMEDIA | JIAHUA STORES vs. Live Nation Entertainment | JIAHUA STORES vs. Geely Automobile Holdings | JIAHUA STORES vs. Universal Entertainment |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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