Correlation Between Geely Automobile and Korn Ferry
Can any of the company-specific risk be diversified away by investing in both Geely Automobile and Korn Ferry 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 Korn Ferry 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 Korn Ferry, you can compare the effects of market volatilities on Geely Automobile and Korn Ferry 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 Korn Ferry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and Korn Ferry.
Diversification Opportunities for Geely Automobile and Korn Ferry
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Geely and Korn is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and Korn Ferry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korn Ferry 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 Korn Ferry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korn Ferry has no effect on the direction of Geely Automobile i.e., Geely Automobile and Korn Ferry go up and down completely randomly.
Pair Corralation between Geely Automobile and Korn Ferry
Assuming the 90 days horizon Geely Automobile Holdings is expected to generate 1.5 times more return on investment than Korn Ferry. However, Geely Automobile is 1.5 times more volatile than Korn Ferry. It trades about 0.14 of its potential returns per unit of risk. Korn Ferry is currently generating about 0.07 per unit of risk. If you would invest 75.00 in Geely Automobile Holdings on September 14, 2024 and sell it today you would earn a total of 119.00 from holding Geely Automobile Holdings or generate 158.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geely Automobile Holdings vs. Korn Ferry
Performance |
| Timeline |
| Geely Automobile Holdings |
| Korn Ferry |
Geely Automobile and Korn Ferry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and Korn Ferry
The main advantage of trading using opposite Geely Automobile and Korn Ferry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, Korn Ferry 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 Korn Ferry will offset losses from the drop in Korn Ferry's long position.| Geely Automobile vs. BYD Company Limited | Geely Automobile vs. MERCEDES BENZ GRP ADR14 | Geely Automobile vs. Superior Plus Corp | Geely Automobile vs. SIVERS SEMICONDUCTORS AB |
| Korn Ferry vs. INTERSHOP Communications Aktiengesellschaft | Korn Ferry vs. CITIC Telecom International | Korn Ferry vs. ADRIATIC METALS LS 013355 | Korn Ferry vs. MAROC TELECOM |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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