Correlation Between GENERAL and Webus International

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Can any of the company-specific risk be diversified away by investing in both GENERAL and Webus International 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 GENERAL and Webus International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GENERAL ELEC CAP and Webus International Limited, you can compare the effects of market volatilities on GENERAL and Webus International 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 GENERAL with a short position of Webus International. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENERAL and Webus International.

Diversification Opportunities for GENERAL and Webus International

-0.34
  Correlation Coefficient

Very good diversification

The 3 months correlation between GENERAL and Webus is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL ELEC CAP and Webus International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Webus International and GENERAL 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 GENERAL ELEC CAP are associated (or correlated) with Webus International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Webus International has no effect on the direction of GENERAL i.e., GENERAL and Webus International go up and down completely randomly.

Pair Corralation between GENERAL and Webus International

Assuming the 90 days trading horizon GENERAL ELEC CAP is expected to generate 0.21 times more return on investment than Webus International. However, GENERAL ELEC CAP is 4.66 times less risky than Webus International. It trades about -0.05 of its potential returns per unit of risk. Webus International Limited is currently generating about -0.16 per unit of risk. If you would invest  9,937  in GENERAL ELEC CAP on August 14, 2025 and sell it today you would lose (166.00) from holding GENERAL ELEC CAP or give up 1.67% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy37.5%
ValuesDaily Returns

GENERAL ELEC CAP  vs.  Webus International Limited

 Performance 
       Timeline  
GENERAL ELEC CAP 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days GENERAL ELEC CAP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, GENERAL is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
Webus International 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Webus International Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

GENERAL and Webus International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GENERAL and Webus International

The main advantage of trading using opposite GENERAL and Webus International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENERAL position performs unexpectedly, Webus International 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 Webus International will offset losses from the drop in Webus International's long position.
The idea behind GENERAL ELEC CAP and Webus International Limited 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.
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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