Correlation Between Geely Automobile and Eskay Mining
Can any of the company-specific risk be diversified away by investing in both Geely Automobile and Eskay Mining 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 Eskay Mining 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 Eskay Mining Corp, you can compare the effects of market volatilities on Geely Automobile and Eskay Mining 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 Eskay Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and Eskay Mining.
Diversification Opportunities for Geely Automobile and Eskay Mining
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Geely and Eskay is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and Eskay Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eskay Mining Corp 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 Eskay Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eskay Mining Corp has no effect on the direction of Geely Automobile i.e., Geely Automobile and Eskay Mining go up and down completely randomly.
Pair Corralation between Geely Automobile and Eskay Mining
Assuming the 90 days horizon Geely Automobile Holdings is expected to generate 0.38 times more return on investment than Eskay Mining. However, Geely Automobile Holdings is 2.64 times less risky than Eskay Mining. It trades about 0.12 of its potential returns per unit of risk. Eskay Mining Corp is currently generating about 0.0 per unit of risk. If you would invest 163.00 in Geely Automobile Holdings on September 22, 2024 and sell it today you would earn a total of 27.00 from holding Geely Automobile Holdings or generate 16.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geely Automobile Holdings vs. Eskay Mining Corp
Performance |
| Timeline |
| Geely Automobile Holdings |
| Eskay Mining Corp |
Geely Automobile and Eskay Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and Eskay Mining
The main advantage of trading using opposite Geely Automobile and Eskay Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, Eskay Mining 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 Eskay Mining will offset losses from the drop in Eskay Mining's long position.| Geely Automobile vs. Tesla Inc | Geely Automobile vs. Toyota Motor | Geely Automobile vs. Toyota Motor | Geely Automobile vs. BYD Company Limited |
| Eskay Mining vs. Rio Tinto Group | Eskay Mining vs. Anglo American plc | Eskay Mining vs. Liontown Resources Limited | Eskay Mining vs. NEXA RESOURCES SA |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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