Correlation Between CODERE ONLINE and GEELY AUTOMOBILE

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both CODERE ONLINE 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 CODERE ONLINE and GEELY AUTOMOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CODERE ONLINE LUX and GEELY AUTOMOBILE, you can compare the effects of market volatilities on CODERE ONLINE 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 CODERE ONLINE with a short position of GEELY AUTOMOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CODERE ONLINE and GEELY AUTOMOBILE.

Diversification Opportunities for CODERE ONLINE and GEELY AUTOMOBILE

-0.46
  Correlation Coefficient

Very good diversification

The 3 months correlation between CODERE and GEELY is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding CODERE ONLINE LUX and GEELY AUTOMOBILE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEELY AUTOMOBILE and CODERE ONLINE 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 CODERE ONLINE LUX 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 CODERE ONLINE i.e., CODERE ONLINE and GEELY AUTOMOBILE go up and down completely randomly.

Pair Corralation between CODERE ONLINE and GEELY AUTOMOBILE

Assuming the 90 days horizon CODERE ONLINE LUX is expected to under-perform the GEELY AUTOMOBILE. In addition to that, CODERE ONLINE is 1.63 times more volatile than GEELY AUTOMOBILE. It trades about -0.3 of its total potential returns per unit of risk. GEELY AUTOMOBILE is currently generating about -0.28 per unit of volatility. If you would invest  191.00  in GEELY AUTOMOBILE on October 11, 2024 and sell it today you would lose (16.00) from holding GEELY AUTOMOBILE or give up 8.38% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

CODERE ONLINE LUX  vs.  GEELY AUTOMOBILE

 Performance 
       Timeline  
CODERE ONLINE LUX 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CODERE ONLINE LUX has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
GEELY AUTOMOBILE 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in GEELY AUTOMOBILE are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, GEELY AUTOMOBILE unveiled solid returns over the last few months and may actually be approaching a breakup point.

CODERE ONLINE and GEELY AUTOMOBILE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CODERE ONLINE and GEELY AUTOMOBILE

The main advantage of trading using opposite CODERE ONLINE and GEELY AUTOMOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CODERE ONLINE 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 CODERE ONLINE LUX 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

Other Complementary Tools

Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
CEOs Directory
Screen CEOs from public companies around the world
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Volatility Analysis
Get historical volatility and risk analysis based on latest market data