Correlation Between Geely Automobile and Gruppo Mutuionline
Can any of the company-specific risk be diversified away by investing in both Geely Automobile and Gruppo Mutuionline 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 Gruppo Mutuionline 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 Gruppo Mutuionline SpA, you can compare the effects of market volatilities on Geely Automobile and Gruppo Mutuionline 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 Gruppo Mutuionline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and Gruppo Mutuionline.
Diversification Opportunities for Geely Automobile and Gruppo Mutuionline
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Geely and Gruppo is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and Gruppo Mutuionline SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gruppo Mutuionline SpA 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 Gruppo Mutuionline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gruppo Mutuionline SpA has no effect on the direction of Geely Automobile i.e., Geely Automobile and Gruppo Mutuionline go up and down completely randomly.
Pair Corralation between Geely Automobile and Gruppo Mutuionline
Assuming the 90 days horizon Geely Automobile is expected to generate 27.95 times less return on investment than Gruppo Mutuionline. In addition to that, Geely Automobile is 1.35 times more volatile than Gruppo Mutuionline SpA. It trades about 0.0 of its total potential returns per unit of risk. Gruppo Mutuionline SpA is currently generating about 0.09 per unit of volatility. If you would invest 3,255 in Gruppo Mutuionline SpA on October 26, 2024 and sell it today you would earn a total of 315.00 from holding Gruppo Mutuionline SpA or generate 9.68% 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. Gruppo Mutuionline SpA
Performance |
| Timeline |
| Geely Automobile Holdings |
| Gruppo Mutuionline SpA |
Geely Automobile and Gruppo Mutuionline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and Gruppo Mutuionline
The main advantage of trading using opposite Geely Automobile and Gruppo Mutuionline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, Gruppo Mutuionline 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 Gruppo Mutuionline will offset losses from the drop in Gruppo Mutuionline's long position.| Geely Automobile vs. UNITED UTILITIES GR | Geely Automobile vs. Sunny Optical Technology | Geely Automobile vs. PKSHA TECHNOLOGY INC | Geely Automobile vs. STEEL DYNAMICS |
| Gruppo Mutuionline vs. Geely Automobile Holdings | Gruppo Mutuionline vs. VIENNA INSURANCE GR | Gruppo Mutuionline vs. CarsalesCom | Gruppo Mutuionline vs. Cars Inc |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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