Correlation Between OURGAME INTHOLDL and Autohome ADR
Can any of the company-specific risk be diversified away by investing in both OURGAME INTHOLDL and Autohome ADR 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 OURGAME INTHOLDL and Autohome ADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OURGAME INTHOLDL 00005 and Autohome ADR, you can compare the effects of market volatilities on OURGAME INTHOLDL and Autohome ADR 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 OURGAME INTHOLDL with a short position of Autohome ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of OURGAME INTHOLDL and Autohome ADR.
Diversification Opportunities for OURGAME INTHOLDL and Autohome ADR
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OURGAME and Autohome is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OURGAME INTHOLDL 00005 and Autohome ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohome ADR and OURGAME INTHOLDL 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 OURGAME INTHOLDL 00005 are associated (or correlated) with Autohome ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autohome ADR has no effect on the direction of OURGAME INTHOLDL i.e., OURGAME INTHOLDL and Autohome ADR go up and down completely randomly.
Pair Corralation between OURGAME INTHOLDL and Autohome ADR
If you would invest 2,360 in Autohome ADR on November 1, 2024 and sell it today you would earn a total of 280.00 from holding Autohome ADR or generate 11.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
OURGAME INTHOLDL 00005 vs. Autohome ADR
Performance |
| Timeline |
| OURGAME INTHOLDL 00005 |
| Autohome ADR |
OURGAME INTHOLDL and Autohome ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OURGAME INTHOLDL and Autohome ADR
The main advantage of trading using opposite OURGAME INTHOLDL and Autohome ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OURGAME INTHOLDL position performs unexpectedly, Autohome ADR 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 Autohome ADR will offset losses from the drop in Autohome ADR's long position.| OURGAME INTHOLDL vs. Sims Metal Management | OURGAME INTHOLDL vs. Performance Food Group | OURGAME INTHOLDL vs. Cleanaway Waste Management | OURGAME INTHOLDL vs. EBRO FOODS |
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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.
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