Correlation Between Geely Automobile and Universal Display
Can any of the company-specific risk be diversified away by investing in both Geely Automobile and Universal Display 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 Universal Display 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 Universal Display, you can compare the effects of market volatilities on Geely Automobile and Universal Display 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 Universal Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and Universal Display.
Diversification Opportunities for Geely Automobile and Universal Display
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Geely and Universal is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and Universal Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Display 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 Universal Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Display has no effect on the direction of Geely Automobile i.e., Geely Automobile and Universal Display go up and down completely randomly.
Pair Corralation between Geely Automobile and Universal Display
Assuming the 90 days horizon Geely Automobile Holdings is expected to generate 1.04 times more return on investment than Universal Display. However, Geely Automobile is 1.04 times more volatile than Universal Display. It trades about 0.12 of its potential returns per unit of risk. Universal Display is currently generating about -0.03 per unit of risk. If you would invest 105.00 in Geely Automobile Holdings on October 13, 2024 and sell it today you would earn a total of 66.00 from holding Geely Automobile Holdings or generate 62.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geely Automobile Holdings vs. Universal Display
Performance |
| Timeline |
| Geely Automobile Holdings |
| Universal Display |
Geely Automobile and Universal Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and Universal Display
The main advantage of trading using opposite Geely Automobile and Universal Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, Universal Display 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 Universal Display will offset losses from the drop in Universal Display's long position.| Geely Automobile vs. INFORMATION SVC GRP | Geely Automobile vs. DATAGROUP SE | Geely Automobile vs. Information Services International Dentsu | Geely Automobile vs. Zoom Video Communications |
| Universal Display vs. Geely Automobile Holdings | Universal Display vs. GRUPO CARSO A1 | Universal Display vs. PLAYMATES TOYS | Universal Display vs. Coor Service Management |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world |