Correlation Between Geely Automobile and Intel
Can any of the company-specific risk be diversified away by investing in both Geely Automobile and Intel 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 Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geely Automobile Holdings and Intel, you can compare the effects of market volatilities on Geely Automobile and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and Intel.
Diversification Opportunities for Geely Automobile and Intel
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Geely and Intel is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Holdings are associated (or correlated) with Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Geely Automobile i.e., Geely Automobile and Intel go up and down completely randomly.
Pair Corralation between Geely Automobile and Intel
Assuming the 90 days horizon Geely Automobile Holdings is expected to generate 1.26 times more return on investment than Intel. However, Geely Automobile is 1.26 times more volatile than Intel. It trades about 0.15 of its potential returns per unit of risk. Intel is currently generating about 0.06 per unit of risk. If you would invest 158.00 in Geely Automobile Holdings on April 23, 2025 and sell it today you would earn a total of 48.00 from holding Geely Automobile Holdings or generate 30.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.44% |
Values | Daily Returns |
Geely Automobile Holdings vs. Intel
Performance |
Timeline |
Geely Automobile Holdings |
Intel |
Geely Automobile and Intel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Geely Automobile and Intel
The main advantage of trading using opposite Geely Automobile and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.Geely Automobile vs. Toyota Motor | Geely Automobile vs. BYD Company Limited | Geely Automobile vs. AUREA SA INH | Geely Automobile vs. SIVERS SEMICONDUCTORS AB |
Intel vs. Apollo Investment Corp | Intel vs. SLR Investment Corp | Intel vs. Bio Techne Corp | Intel vs. Minerals Technologies |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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