Correlation Between Guangzhou Automobile and HomeTrust Bancshares,
Can any of the company-specific risk be diversified away by investing in both Guangzhou Automobile and HomeTrust Bancshares, 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 Guangzhou Automobile and HomeTrust Bancshares, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guangzhou Automobile Group and HomeTrust Bancshares,, you can compare the effects of market volatilities on Guangzhou Automobile and HomeTrust Bancshares, 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 Guangzhou Automobile with a short position of HomeTrust Bancshares,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Automobile and HomeTrust Bancshares,.
Diversification Opportunities for Guangzhou Automobile and HomeTrust Bancshares,
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangzhou and HomeTrust is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Automobile Group and HomeTrust Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeTrust Bancshares, and Guangzhou 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 Guangzhou Automobile Group are associated (or correlated) with HomeTrust Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HomeTrust Bancshares, has no effect on the direction of Guangzhou Automobile i.e., Guangzhou Automobile and HomeTrust Bancshares, go up and down completely randomly.
Pair Corralation between Guangzhou Automobile and HomeTrust Bancshares,
Assuming the 90 days horizon Guangzhou Automobile Group is expected to generate 4.02 times more return on investment than HomeTrust Bancshares,. However, Guangzhou Automobile is 4.02 times more volatile than HomeTrust Bancshares,. It trades about 0.06 of its potential returns per unit of risk. HomeTrust Bancshares, is currently generating about 0.11 per unit of risk. If you would invest 43.00 in Guangzhou Automobile Group on September 12, 2025 and sell it today you would earn a total of 6.00 from holding Guangzhou Automobile Group or generate 13.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Guangzhou Automobile Group vs. HomeTrust Bancshares,
Performance |
| Timeline |
| Guangzhou Automobile |
| HomeTrust Bancshares, |
Guangzhou Automobile and HomeTrust Bancshares, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Automobile and HomeTrust Bancshares,
The main advantage of trading using opposite Guangzhou Automobile and HomeTrust Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Automobile position performs unexpectedly, HomeTrust Bancshares, 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 HomeTrust Bancshares, will offset losses from the drop in HomeTrust Bancshares,'s long position.| Guangzhou Automobile vs. Isuzu Motors | Guangzhou Automobile vs. Jardine Cycle Carriage | Guangzhou Automobile vs. Nissan Motor Co | Guangzhou Automobile vs. Jardine Cycle Carriage |
| HomeTrust Bancshares, vs. Metropolitan Bank Holding | HomeTrust Bancshares, vs. Capital City Bank | HomeTrust Bancshares, vs. Amerant Bancorp | HomeTrust Bancshares, vs. Northeast Bancorp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |