Correlation Between SIVERS SEMICONDUCTORS and Autohome ADR
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS and Autohome ADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIVERS SEMICONDUCTORS AB and Autohome ADR, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS with a short position of Autohome ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and Autohome ADR.
Diversification Opportunities for SIVERS SEMICONDUCTORS and Autohome ADR
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between SIVERS and Autohome is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and Autohome ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohome ADR and SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS AB 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 SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and Autohome ADR go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and Autohome ADR
Assuming the 90 days horizon SIVERS SEMICONDUCTORS is expected to generate 1.45 times less return on investment than Autohome ADR. In addition to that, SIVERS SEMICONDUCTORS is 4.26 times more volatile than Autohome ADR. It trades about 0.01 of its total potential returns per unit of risk. Autohome ADR is currently generating about 0.06 per unit of volatility. If you would invest 2,560 in Autohome ADR on September 13, 2024 and sell it today you would earn a total of 60.00 from holding Autohome ADR or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. Autohome ADR
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| Autohome ADR |
SIVERS SEMICONDUCTORS and Autohome ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and Autohome ADR
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and Autohome ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS 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.| SIVERS SEMICONDUCTORS vs. REGAL ASIAN INVESTMENTS | SIVERS SEMICONDUCTORS vs. Monster Beverage Corp | SIVERS SEMICONDUCTORS vs. SLR Investment Corp | SIVERS SEMICONDUCTORS vs. PennyMac Mortgage Investment |
| Autohome ADR vs. Tencent Holdings | Autohome ADR vs. Superior Plus Corp | Autohome ADR vs. SIVERS SEMICONDUCTORS AB | Autohome ADR vs. NorAm Drilling AS |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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