Correlation Between GEELY AUTOMOBILE and MINCO SILVER
Can any of the company-specific risk be diversified away by investing in both GEELY AUTOMOBILE and MINCO SILVER 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 MINCO SILVER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GEELY AUTOMOBILE and MINCO SILVER, you can compare the effects of market volatilities on GEELY AUTOMOBILE and MINCO SILVER 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 MINCO SILVER. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEELY AUTOMOBILE and MINCO SILVER.
Diversification Opportunities for GEELY AUTOMOBILE and MINCO SILVER
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GEELY and MINCO is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding GEELY AUTOMOBILE and MINCO SILVER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MINCO SILVER 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 MINCO SILVER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MINCO SILVER has no effect on the direction of GEELY AUTOMOBILE i.e., GEELY AUTOMOBILE and MINCO SILVER go up and down completely randomly.
Pair Corralation between GEELY AUTOMOBILE and MINCO SILVER
Assuming the 90 days trading horizon GEELY AUTOMOBILE is expected to generate 1.55 times less return on investment than MINCO SILVER. But when comparing it to its historical volatility, GEELY AUTOMOBILE is 1.28 times less risky than MINCO SILVER. It trades about 0.06 of its potential returns per unit of risk. MINCO SILVER is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 12.00 in MINCO SILVER on December 28, 2024 and sell it today you would earn a total of 2.00 from holding MINCO SILVER or generate 16.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
GEELY AUTOMOBILE vs. MINCO SILVER
Performance |
Timeline |
GEELY AUTOMOBILE |
MINCO SILVER |
GEELY AUTOMOBILE and MINCO SILVER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GEELY AUTOMOBILE and MINCO SILVER
The main advantage of trading using opposite GEELY AUTOMOBILE and MINCO SILVER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEELY AUTOMOBILE position performs unexpectedly, MINCO SILVER 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 MINCO SILVER will offset losses from the drop in MINCO SILVER's long position.GEELY AUTOMOBILE vs. CENTURIA OFFICE REIT | GEELY AUTOMOBILE vs. CITY OFFICE REIT | GEELY AUTOMOBILE vs. PICKN PAY STORES | GEELY AUTOMOBILE vs. Fast Retailing Co |
MINCO SILVER vs. SENECA FOODS A | MINCO SILVER vs. Suntory Beverage Food | MINCO SILVER vs. SEKISUI CHEMICAL | MINCO SILVER vs. United Natural Foods |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |