Correlation Analysis Between Sothebys and Genuine Parts

This module allows you to analyze existing cross correlation between Sothebys and Genuine Parts Company. You can compare the effects of market volatilities on Sothebys and Genuine Parts 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 Sothebys with a short position of Genuine Parts. See also your portfolio center. Please also check ongoing floating volatility patterns of Sothebys and Genuine Parts.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Sothebys  
00

Risk-Adjusted Performance

Over the last 30 days Sothebys has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, Sothebys is not utilizing all of its potentials. The existing stock price tumult, may contribute to shorter-term losses for the shareholders.
Genuine Parts  
1313

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Genuine Parts Company are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days. Despite somewhat inconsistent basic indicators, Genuine Parts sustained solid returns over the last few months and may actually be approaching a breakup point.

Sothebys and Genuine Parts Volatility Contrast

 Predicted Return Density 
      Returns 

Sothebys  vs.  Genuine Parts Company

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Sothebys is expected to under-perform the Genuine Parts. But the stock apears to be less risky and, when comparing its historical volatility, Sothebys is 4.74 times less risky than Genuine Parts. The stock trades about -0.27 of its potential returns per unit of risk. The Genuine Parts Company is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  8,962  in Genuine Parts Company on October 18, 2019 and sell it today you would earn a total of  1,521  from holding Genuine Parts Company or generate 16.97% return on investment over 30 days.

Pair Corralation between Sothebys and Genuine Parts

-0.58
Time Period3 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy66.15%
ValuesDaily Returns

Diversification Opportunities for Sothebys and Genuine Parts

Sothebys diversification synergy

Excellent diversification

Overlapping area represents the amount of risk that can be diversified away by holding Sothebys and Genuine Parts Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Genuine Parts and Sothebys 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 Sothebys are associated (or correlated) with Genuine Parts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genuine Parts has no effect on the direction of Sothebys i.e. Sothebys and Genuine Parts go up and down completely randomly.
See also your portfolio center. Please also try Volatility Analysis module to get historical volatility and risk analysis based on latest market data.


 
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