Correlation Between Geely Automobile and Quaker Chemical
Can any of the company-specific risk be diversified away by investing in both Geely Automobile and Quaker Chemical 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 Quaker Chemical 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 Quaker Chemical, you can compare the effects of market volatilities on Geely Automobile and Quaker Chemical 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 Quaker Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and Quaker Chemical.
Diversification Opportunities for Geely Automobile and Quaker Chemical
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Geely and Quaker is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and Quaker Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaker Chemical 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 Quaker Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quaker Chemical has no effect on the direction of Geely Automobile i.e., Geely Automobile and Quaker Chemical go up and down completely randomly.
Pair Corralation between Geely Automobile and Quaker Chemical
Assuming the 90 days horizon Geely Automobile Holdings is expected to generate 1.69 times more return on investment than Quaker Chemical. However, Geely Automobile is 1.69 times more volatile than Quaker Chemical. It trades about 0.2 of its potential returns per unit of risk. Quaker Chemical is currently generating about 0.06 per unit of risk. If you would invest 99.00 in Geely Automobile Holdings on August 29, 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 | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geely Automobile Holdings vs. Quaker Chemical
Performance |
| Timeline |
| Geely Automobile Holdings |
| Quaker Chemical |
Geely Automobile and Quaker Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and Quaker Chemical
The main advantage of trading using opposite Geely Automobile and Quaker Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, Quaker Chemical 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 Quaker Chemical will offset losses from the drop in Quaker Chemical's long position.| Geely Automobile vs. STORE ELECTRONIC | Geely Automobile vs. BYD ELECTRONIC | Geely Automobile vs. Arrow Electronics | Geely Automobile vs. PennantPark Investment |
| Quaker Chemical vs. Linde plc | Quaker Chemical vs. Superior Plus Corp | Quaker Chemical vs. NMI Holdings | Quaker Chemical vs. SIVERS SEMICONDUCTORS AB |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |