Correlation Between GREENX METALS and Autohome ADR
Can any of the company-specific risk be diversified away by investing in both GREENX METALS 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 GREENX METALS and Autohome ADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and Autohome ADR, you can compare the effects of market volatilities on GREENX METALS 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 GREENX METALS with a short position of Autohome ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Autohome ADR.
Diversification Opportunities for GREENX METALS and Autohome ADR
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GREENX and Autohome is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Autohome ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohome ADR and GREENX METALS 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 GREENX METALS LTD 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 GREENX METALS i.e., GREENX METALS and Autohome ADR go up and down completely randomly.
Pair Corralation between GREENX METALS and Autohome ADR
Assuming the 90 days trading horizon GREENX METALS LTD is expected to generate 0.69 times more return on investment than Autohome ADR. However, GREENX METALS LTD is 1.45 times less risky than Autohome ADR. It trades about 0.2 of its potential returns per unit of risk. Autohome ADR is currently generating about 0.13 per unit of risk. If you would invest 40.00 in GREENX METALS LTD on October 25, 2024 and sell it today you would earn a total of 4.00 from holding GREENX METALS LTD or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. Autohome ADR
Performance |
| Timeline |
| GREENX METALS LTD |
| Autohome ADR |
GREENX METALS and Autohome ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Autohome ADR
The main advantage of trading using opposite GREENX METALS and Autohome ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS 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.| GREENX METALS vs. COPLAND ROAD CAPITAL | GREENX METALS vs. Television Broadcasts Limited | GREENX METALS vs. TRAINLINE PLC LS | GREENX METALS vs. NorAm Drilling AS |
| Autohome ADR vs. Alphabet Class A | Autohome ADR vs. Meta Platforms | Autohome ADR vs. Tencent Holdings Ltd | Autohome ADR vs. Tencent Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
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