Correlation Between Suzuki and Great Wall
Can any of the company-specific risk be diversified away by investing in both Suzuki and Great Wall 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 Suzuki and Great Wall into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suzuki Motor and Great Wall Motor, you can compare the effects of market volatilities on Suzuki and Great Wall 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 Suzuki with a short position of Great Wall. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzuki and Great Wall.
Diversification Opportunities for Suzuki and Great Wall
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Suzuki and Great is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Suzuki Motor and Great Wall Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Wall Motor and Suzuki 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 Suzuki Motor are associated (or correlated) with Great Wall. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Wall Motor has no effect on the direction of Suzuki i.e., Suzuki and Great Wall go up and down completely randomly.
Pair Corralation between Suzuki and Great Wall
Assuming the 90 days horizon Suzuki Motor is expected to generate 1.34 times more return on investment than Great Wall. However, Suzuki is 1.34 times more volatile than Great Wall Motor. It trades about 0.08 of its potential returns per unit of risk. Great Wall Motor is currently generating about -0.17 per unit of risk. If you would invest 1,397 in Suzuki Motor on September 6, 2025 and sell it today you would earn a total of 196.00 from holding Suzuki Motor or generate 14.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzuki Motor vs. Great Wall Motor
Performance |
| Timeline |
| Suzuki Motor |
| Great Wall Motor |
Suzuki and Great Wall Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzuki and Great Wall
The main advantage of trading using opposite Suzuki and Great Wall positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzuki position performs unexpectedly, Great Wall 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 Great Wall will offset losses from the drop in Great Wall's long position.| Suzuki vs. National Healthcare Logistics | Suzuki vs. Union Medical Healthcare | Suzuki vs. Cabo Drilling Corp | Suzuki vs. Yooma Wellness |
| Great Wall vs. Toyota Motor | Great Wall vs. Toyota Motor Corp | Great Wall vs. BYD Co Ltd | Great Wall vs. BYD Company Limited |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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