Correlation Between GEELY AUTOMOBILE and FISH PAYK
Can any of the company-specific risk be diversified away by investing in both GEELY AUTOMOBILE and FISH PAYK 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 FISH PAYK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GEELY AUTOMOBILE and FISH PAYK HEALTH, you can compare the effects of market volatilities on GEELY AUTOMOBILE and FISH PAYK 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 FISH PAYK. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEELY AUTOMOBILE and FISH PAYK.
Diversification Opportunities for GEELY AUTOMOBILE and FISH PAYK
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between GEELY and FISH is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding GEELY AUTOMOBILE and FISH PAYK HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FISH PAYK HEALTH 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 are associated (or correlated) with FISH PAYK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FISH PAYK HEALTH has no effect on the direction of GEELY AUTOMOBILE i.e., GEELY AUTOMOBILE and FISH PAYK go up and down completely randomly.
Pair Corralation between GEELY AUTOMOBILE and FISH PAYK
Assuming the 90 days trading horizon GEELY AUTOMOBILE is expected to generate 1.45 times more return on investment than FISH PAYK. However, GEELY AUTOMOBILE is 1.45 times more volatile than FISH PAYK HEALTH. It trades about 0.07 of its potential returns per unit of risk. FISH PAYK HEALTH is currently generating about 0.06 per unit of risk. If you would invest 94.00 in GEELY AUTOMOBILE on September 12, 2024 and sell it today you would earn a total of 97.00 from holding GEELY AUTOMOBILE or generate 103.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
GEELY AUTOMOBILE vs. FISH PAYK HEALTH
Performance |
| Timeline |
| GEELY AUTOMOBILE |
| FISH PAYK HEALTH |
GEELY AUTOMOBILE and FISH PAYK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEELY AUTOMOBILE and FISH PAYK
The main advantage of trading using opposite GEELY AUTOMOBILE and FISH PAYK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEELY AUTOMOBILE position performs unexpectedly, FISH PAYK 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 FISH PAYK will offset losses from the drop in FISH PAYK's long position.| GEELY AUTOMOBILE vs. Apple Inc | GEELY AUTOMOBILE vs. Apple Inc | GEELY AUTOMOBILE vs. Apple Inc | GEELY AUTOMOBILE vs. Apple Inc |
| FISH PAYK vs. INSURANCE AUST GRP | FISH PAYK vs. SBI Insurance Group | FISH PAYK vs. GRUPO CARSO A1 | FISH PAYK vs. Reinsurance Group of |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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