Correlation Between GEELY AUTOMOBILE and Norma Group
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By analyzing existing cross correlation between GEELY AUTOMOBILE and Norma Group AG, you can compare the effects of market volatilities on GEELY AUTOMOBILE and Norma Group 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 Norma Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEELY AUTOMOBILE and Norma Group.
Diversification Opportunities for GEELY AUTOMOBILE and Norma Group
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GEELY and Norma is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding GEELY AUTOMOBILE and Norma Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norma Group AG 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 Norma Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norma Group AG has no effect on the direction of GEELY AUTOMOBILE i.e., GEELY AUTOMOBILE and Norma Group go up and down completely randomly.
Pair Corralation between GEELY AUTOMOBILE and Norma Group
Assuming the 90 days trading horizon GEELY AUTOMOBILE is expected to generate 3.88 times less return on investment than Norma Group. But when comparing it to its historical volatility, GEELY AUTOMOBILE is 1.39 times less risky than Norma Group. It trades about 0.06 of its potential returns per unit of risk. Norma Group AG is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,266 in Norma Group AG on September 5, 2024 and sell it today you would earn a total of 172.00 from holding Norma Group AG or generate 13.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GEELY AUTOMOBILE vs. Norma Group AG
Performance |
| Timeline |
| GEELY AUTOMOBILE |
| Norma Group AG |
GEELY AUTOMOBILE and Norma Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEELY AUTOMOBILE and Norma Group
The main advantage of trading using opposite GEELY AUTOMOBILE and Norma Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEELY AUTOMOBILE position performs unexpectedly, Norma Group 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 Norma Group will offset losses from the drop in Norma Group's long position.| GEELY AUTOMOBILE vs. CarsalesCom | GEELY AUTOMOBILE vs. USU Software AG | GEELY AUTOMOBILE vs. INTER CARS SA | GEELY AUTOMOBILE vs. UPDATE SOFTWARE |
| Norma Group vs. United Rentals | Norma Group vs. GEELY AUTOMOBILE | Norma Group vs. Bumrungrad Hospital Public | Norma Group vs. National Health Investors |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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