Correlation Between MOVIE GAMES and GEELY AUTOMOBILE

Can any of the company-specific risk be diversified away by investing in both MOVIE GAMES 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 MOVIE GAMES and GEELY AUTOMOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MOVIE GAMES SA and GEELY AUTOMOBILE, you can compare the effects of market volatilities on MOVIE GAMES 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 MOVIE GAMES with a short position of GEELY AUTOMOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOVIE GAMES and GEELY AUTOMOBILE.

Diversification Opportunities for MOVIE GAMES and GEELY AUTOMOBILE

-0.73

Correlation Coefficient

MOVIE GAMES  GEELY AUTOMOBILE

Pay attention - limited upside

The 3 months correlation between MOVIE and GEELY is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA and GEELY AUTOMOBILE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEELY AUTOMOBILE and MOVIE GAMES 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 MOVIE GAMES SA 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 has no effect on the direction of MOVIE GAMES i.e., MOVIE GAMES and GEELY AUTOMOBILE go up and down completely randomly.

Pair Corralation between MOVIE GAMES and GEELY AUTOMOBILE

Assuming the 90 days horizon MOVIE GAMES SA is expected to under-perform the GEELY AUTOMOBILE. In addition to that, MOVIE GAMES is 1.46 times more volatile than GEELY AUTOMOBILE. It trades about 0.0 of its total potential returns per unit of risk. GEELY AUTOMOBILE is currently generating about 0.04 per unit of volatility. If you would invest  170.00  in GEELY AUTOMOBILE on October 23, 2024 and sell it today you would earn a total of  8.00  from holding GEELY AUTOMOBILE or generate 4.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

MOVIE GAMES SA  vs.  GEELY AUTOMOBILE

MOVIE GAMES SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MOVIE GAMES SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, MOVIE GAMES is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

GEELY AUTOMOBILE

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in GEELY AUTOMOBILE are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, GEELY AUTOMOBILE may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with MOVIE GAMES and GEELY AUTOMOBILE

The main advantage of trading using opposite MOVIE GAMES and GEELY AUTOMOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOVIE GAMES 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.

The idea behind MOVIE GAMES SA and GEELY AUTOMOBILE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..