Correlation Between GEELY AUTOMOBILE and SEGRO Plc
Can any of the company-specific risk be diversified away by investing in both GEELY AUTOMOBILE and SEGRO Plc 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 SEGRO Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GEELY AUTOMOBILE and SEGRO Plc, you can compare the effects of market volatilities on GEELY AUTOMOBILE and SEGRO Plc 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 SEGRO Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEELY AUTOMOBILE and SEGRO Plc.
Diversification Opportunities for GEELY AUTOMOBILE and SEGRO Plc
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GEELY and SEGRO is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding GEELY AUTOMOBILE and SEGRO Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEGRO Plc 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 SEGRO Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEGRO Plc has no effect on the direction of GEELY AUTOMOBILE i.e., GEELY AUTOMOBILE and SEGRO Plc go up and down completely randomly.
Pair Corralation between GEELY AUTOMOBILE and SEGRO Plc
Assuming the 90 days trading horizon GEELY AUTOMOBILE is expected to generate 1.15 times more return on investment than SEGRO Plc. However, GEELY AUTOMOBILE is 1.15 times more volatile than SEGRO Plc. It trades about 0.07 of its potential returns per unit of risk. SEGRO Plc is currently generating about 0.02 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 | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
GEELY AUTOMOBILE vs. SEGRO Plc
Performance |
| Timeline |
| GEELY AUTOMOBILE |
| SEGRO Plc |
GEELY AUTOMOBILE and SEGRO Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEELY AUTOMOBILE and SEGRO Plc
The main advantage of trading using opposite GEELY AUTOMOBILE and SEGRO Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEELY AUTOMOBILE position performs unexpectedly, SEGRO Plc 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 SEGRO Plc will offset losses from the drop in SEGRO Plc's long position.| GEELY AUTOMOBILE vs. Apple Inc | GEELY AUTOMOBILE vs. Apple Inc | GEELY AUTOMOBILE vs. Apple Inc | GEELY AUTOMOBILE vs. Apple Inc |
| SEGRO Plc vs. GEELY AUTOMOBILE | SEGRO Plc vs. CARSALESCOM | SEGRO Plc vs. CarsalesCom | SEGRO Plc vs. CENTURIA OFFICE REIT |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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