Correlation Between Geely Automobile and SOCKET MOBILE
Can any of the company-specific risk be diversified away by investing in both Geely Automobile and SOCKET MOBILE 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 SOCKET MOBILE 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 SOCKET MOBILE NEW, you can compare the effects of market volatilities on Geely Automobile and SOCKET MOBILE 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 SOCKET MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and SOCKET MOBILE.
Diversification Opportunities for Geely Automobile and SOCKET MOBILE
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Geely and SOCKET is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and SOCKET MOBILE NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCKET MOBILE NEW 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 SOCKET MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCKET MOBILE NEW has no effect on the direction of Geely Automobile i.e., Geely Automobile and SOCKET MOBILE go up and down completely randomly.
Pair Corralation between Geely Automobile and SOCKET MOBILE
Assuming the 90 days horizon Geely Automobile Holdings is expected to under-perform the SOCKET MOBILE. But the stock apears to be less risky and, when comparing its historical volatility, Geely Automobile Holdings is 2.05 times less risky than SOCKET MOBILE. The stock trades about -0.33 of its potential returns per unit of risk. The SOCKET MOBILE NEW is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 134.00 in SOCKET MOBILE NEW on October 11, 2024 and sell it today you would earn a total of 7.00 from holding SOCKET MOBILE NEW or generate 5.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Geely Automobile Holdings vs. SOCKET MOBILE NEW
Performance |
| Timeline |
| Geely Automobile Holdings |
| SOCKET MOBILE NEW |
Geely Automobile and SOCKET MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and SOCKET MOBILE
The main advantage of trading using opposite Geely Automobile and SOCKET MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, SOCKET MOBILE 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 SOCKET MOBILE will offset losses from the drop in SOCKET MOBILE's long position.| Geely Automobile vs. Hemisphere Energy Corp | Geely Automobile vs. Nippon Steel | Geely Automobile vs. Shenandoah Telecommunications | Geely Automobile vs. Liberty Broadband |
| SOCKET MOBILE vs. Tradeweb Markets | SOCKET MOBILE vs. MARKET VECTR RETAIL | SOCKET MOBILE vs. Acadia Healthcare | SOCKET MOBILE vs. RCI Hospitality Holdings |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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