Correlation Between AUTOHOME INC and Siamgas
Can any of the company-specific risk be diversified away by investing in both AUTOHOME INC and Siamgas 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 AUTOHOME INC and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AUTOHOME INC A and Siamgas And Petrochemicals, you can compare the effects of market volatilities on AUTOHOME INC and Siamgas 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 AUTOHOME INC with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUTOHOME INC and Siamgas.
Diversification Opportunities for AUTOHOME INC and Siamgas
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AUTOHOME and Siamgas is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding AUTOHOME INC A and Siamgas And Petrochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siamgas And Petroche and AUTOHOME INC 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 AUTOHOME INC A are associated (or correlated) with Siamgas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siamgas And Petroche has no effect on the direction of AUTOHOME INC i.e., AUTOHOME INC and Siamgas go up and down completely randomly.
Pair Corralation between AUTOHOME INC and Siamgas
Assuming the 90 days trading horizon AUTOHOME INC is expected to generate 1.57 times less return on investment than Siamgas. In addition to that, AUTOHOME INC is 3.62 times more volatile than Siamgas And Petrochemicals. It trades about 0.04 of its total potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about 0.21 per unit of volatility. If you would invest 18.00 in Siamgas And Petrochemicals on November 3, 2024 and sell it today you would earn a total of 1.00 from holding Siamgas And Petrochemicals or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUTOHOME INC A vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| AUTOHOME INC A |
| Siamgas And Petroche |
AUTOHOME INC and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUTOHOME INC and Siamgas
The main advantage of trading using opposite AUTOHOME INC and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUTOHOME INC position performs unexpectedly, Siamgas 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 Siamgas will offset losses from the drop in Siamgas' long position.| AUTOHOME INC vs. Caseys General Stores | AUTOHOME INC vs. COSTCO WHOLESALE CDR | AUTOHOME INC vs. Cogent Communications Holdings | AUTOHOME INC vs. H2O Retailing |
| Siamgas vs. SIVERS SEMICONDUCTORS AB | Siamgas vs. NorAm Drilling AS | Siamgas vs. Volkswagen AG | Siamgas vs. Darden Restaurants |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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