Correlation Between Geely Automobile and Television Broadcasts
Can any of the company-specific risk be diversified away by investing in both Geely Automobile and Television Broadcasts 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 Television Broadcasts 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 Television Broadcasts Limited, you can compare the effects of market volatilities on Geely Automobile and Television Broadcasts 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 Television Broadcasts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and Television Broadcasts.
Diversification Opportunities for Geely Automobile and Television Broadcasts
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Geely and Television is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and Television Broadcasts Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Television Broadcasts 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 Television Broadcasts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Television Broadcasts has no effect on the direction of Geely Automobile i.e., Geely Automobile and Television Broadcasts go up and down completely randomly.
Pair Corralation between Geely Automobile and Television Broadcasts
Assuming the 90 days horizon Geely Automobile Holdings is expected to generate 0.41 times more return on investment than Television Broadcasts. However, Geely Automobile Holdings is 2.44 times less risky than Television Broadcasts. It trades about 0.06 of its potential returns per unit of risk. Television Broadcasts Limited is currently generating about 0.02 per unit of risk. If you would invest 92.00 in Geely Automobile Holdings on November 5, 2024 and sell it today you would earn a total of 85.00 from holding Geely Automobile Holdings or generate 92.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geely Automobile Holdings vs. Television Broadcasts Limited
Performance |
| Timeline |
| Geely Automobile Holdings |
| Television Broadcasts |
Geely Automobile and Television Broadcasts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and Television Broadcasts
The main advantage of trading using opposite Geely Automobile and Television Broadcasts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, Television Broadcasts 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 Television Broadcasts will offset losses from the drop in Television Broadcasts' long position.| Geely Automobile vs. Yanzhou Coal Mining | Geely Automobile vs. Monument Mining Limited | Geely Automobile vs. Lifeway Foods | Geely Automobile vs. PLANT VEDA FOODS |
| Television Broadcasts vs. SPORT LISBOA E | Television Broadcasts vs. Casio Computer CoLtd | Television Broadcasts vs. G III Apparel Group | Television Broadcasts vs. ANTA SPORTS PRODUCT |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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