Correlation Between Geely Automobile and HF SINCLAIR
Can any of the company-specific risk be diversified away by investing in both Geely Automobile and HF SINCLAIR 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 HF SINCLAIR 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 HF SINCLAIR P, you can compare the effects of market volatilities on Geely Automobile and HF SINCLAIR 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 HF SINCLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and HF SINCLAIR.
Diversification Opportunities for Geely Automobile and HF SINCLAIR
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Geely and HL80 is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and HF SINCLAIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF SINCLAIR P 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 HF SINCLAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF SINCLAIR P has no effect on the direction of Geely Automobile i.e., Geely Automobile and HF SINCLAIR go up and down completely randomly.
Pair Corralation between Geely Automobile and HF SINCLAIR
Assuming the 90 days horizon Geely Automobile Holdings is expected to generate 1.75 times more return on investment than HF SINCLAIR. However, Geely Automobile is 1.75 times more volatile than HF SINCLAIR P. It trades about 0.15 of its potential returns per unit of risk. HF SINCLAIR P is currently generating about -0.08 per unit of risk. If you would invest 93.00 in Geely Automobile Holdings on September 1, 2024 and sell it today you would earn a total of 76.00 from holding Geely Automobile Holdings or generate 81.72% 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. HF SINCLAIR P
Performance |
| Timeline |
| Geely Automobile Holdings |
| HF SINCLAIR P |
Geely Automobile and HF SINCLAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and HF SINCLAIR
The main advantage of trading using opposite Geely Automobile and HF SINCLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, HF SINCLAIR 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 HF SINCLAIR will offset losses from the drop in HF SINCLAIR's long position.| Geely Automobile vs. MAVEN WIRELESS SWEDEN | Geely Automobile vs. SWISS WATER DECAFFCOFFEE | Geely Automobile vs. BJs Restaurants | Geely Automobile vs. HomeToGo SE |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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