Correlation Between SCANDMEDICAL SOLDK and Geely Automobile
Can any of the company-specific risk be diversified away by investing in both SCANDMEDICAL SOLDK and Geely Automobile 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 SCANDMEDICAL SOLDK and Geely Automobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANDMEDICAL SOLDK 040 and Geely Automobile Holdings, you can compare the effects of market volatilities on SCANDMEDICAL SOLDK and Geely Automobile 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 SCANDMEDICAL SOLDK with a short position of Geely Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDMEDICAL SOLDK and Geely Automobile.
Diversification Opportunities for SCANDMEDICAL SOLDK and Geely Automobile
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SCANDMEDICAL and Geely is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding SCANDMEDICAL SOLDK 040 and Geely Automobile Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geely Automobile Holdings and SCANDMEDICAL SOLDK 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 SCANDMEDICAL SOLDK 040 are associated (or correlated) with Geely Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geely Automobile Holdings has no effect on the direction of SCANDMEDICAL SOLDK i.e., SCANDMEDICAL SOLDK and Geely Automobile go up and down completely randomly.
Pair Corralation between SCANDMEDICAL SOLDK and Geely Automobile
Assuming the 90 days horizon SCANDMEDICAL SOLDK 040 is expected to generate 1.42 times more return on investment than Geely Automobile. However, SCANDMEDICAL SOLDK is 1.42 times more volatile than Geely Automobile Holdings. It trades about 0.07 of its potential returns per unit of risk. Geely Automobile Holdings is currently generating about -0.15 per unit of risk. If you would invest 77.00 in SCANDMEDICAL SOLDK 040 on August 30, 2024 and sell it today you would earn a total of 4.00 from holding SCANDMEDICAL SOLDK 040 or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANDMEDICAL SOLDK 040 vs. Geely Automobile Holdings
Performance |
| Timeline |
| SCANDMEDICAL SOLDK 040 |
| Geely Automobile Holdings |
SCANDMEDICAL SOLDK and Geely Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANDMEDICAL SOLDK and Geely Automobile
The main advantage of trading using opposite SCANDMEDICAL SOLDK and Geely Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDMEDICAL SOLDK position performs unexpectedly, Geely Automobile 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 Geely Automobile will offset losses from the drop in Geely Automobile's long position.| SCANDMEDICAL SOLDK vs. Medtronic PLC | SCANDMEDICAL SOLDK vs. Stryker | SCANDMEDICAL SOLDK vs. Boston Scientific | SCANDMEDICAL SOLDK vs. Edwards Lifesciences |
| Geely Automobile vs. SCANDMEDICAL SOLDK 040 | Geely Automobile vs. MeVis Medical Solutions | Geely Automobile vs. ONWARD MEDICAL BV | Geely Automobile vs. Diamyd Medical AB |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |