Correlation Between Autohome ADR and SANOK RUBBER
Can any of the company-specific risk be diversified away by investing in both Autohome ADR and SANOK RUBBER 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 ADR and SANOK RUBBER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autohome ADR and SANOK RUBBER ZY, you can compare the effects of market volatilities on Autohome ADR and SANOK RUBBER 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 ADR with a short position of SANOK RUBBER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohome ADR and SANOK RUBBER.
Diversification Opportunities for Autohome ADR and SANOK RUBBER
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Autohome and SANOK is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Autohome ADR and SANOK RUBBER ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANOK RUBBER ZY and Autohome ADR 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 ADR are associated (or correlated) with SANOK RUBBER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANOK RUBBER ZY has no effect on the direction of Autohome ADR i.e., Autohome ADR and SANOK RUBBER go up and down completely randomly.
Pair Corralation between Autohome ADR and SANOK RUBBER
Assuming the 90 days trading horizon Autohome ADR is expected to under-perform the SANOK RUBBER. In addition to that, Autohome ADR is 1.8 times more volatile than SANOK RUBBER ZY. It trades about -0.06 of its total potential returns per unit of risk. SANOK RUBBER ZY is currently generating about 0.19 per unit of volatility. If you would invest 442.00 in SANOK RUBBER ZY on October 1, 2024 and sell it today you would earn a total of 38.00 from holding SANOK RUBBER ZY or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autohome ADR vs. SANOK RUBBER ZY
Performance |
| Timeline |
| Autohome ADR |
| SANOK RUBBER ZY |
Autohome ADR and SANOK RUBBER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autohome ADR and SANOK RUBBER
The main advantage of trading using opposite Autohome ADR and SANOK RUBBER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autohome ADR position performs unexpectedly, SANOK RUBBER 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 SANOK RUBBER will offset losses from the drop in SANOK RUBBER's long position.| Autohome ADR vs. Alphabet | Autohome ADR vs. Meta Platforms | Autohome ADR vs. Meta Platforms | Autohome ADR vs. AIRBNB INC DL 01 |
| SANOK RUBBER vs. Casio Computer CoLtd | SANOK RUBBER vs. MACOM Technology Solutions | SANOK RUBBER vs. Computer And Technologies | SANOK RUBBER vs. Align Technology |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |