Correlation Between Autohome ADR and BANK RAKYAT
Can any of the company-specific risk be diversified away by investing in both Autohome ADR and BANK RAKYAT 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 BANK RAKYAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autohome ADR and BANK RAKYAT IND, you can compare the effects of market volatilities on Autohome ADR and BANK RAKYAT 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 BANK RAKYAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohome ADR and BANK RAKYAT.
Diversification Opportunities for Autohome ADR and BANK RAKYAT
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Autohome and BANK is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Autohome ADR and BANK RAKYAT IND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK RAKYAT IND 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 BANK RAKYAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK RAKYAT IND has no effect on the direction of Autohome ADR i.e., Autohome ADR and BANK RAKYAT go up and down completely randomly.
Pair Corralation between Autohome ADR and BANK RAKYAT
Assuming the 90 days trading horizon Autohome ADR is expected to generate 0.97 times more return on investment than BANK RAKYAT. However, Autohome ADR is 1.03 times less risky than BANK RAKYAT. It trades about 0.09 of its potential returns per unit of risk. BANK RAKYAT IND is currently generating about -0.03 per unit of risk. If you would invest 2,200 in Autohome ADR on September 3, 2024 and sell it today you would earn a total of 320.00 from holding Autohome ADR or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autohome ADR vs. BANK RAKYAT IND
Performance |
| Timeline |
| Autohome ADR |
| BANK RAKYAT IND |
Autohome ADR and BANK RAKYAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autohome ADR and BANK RAKYAT
The main advantage of trading using opposite Autohome ADR and BANK RAKYAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autohome ADR position performs unexpectedly, BANK RAKYAT 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 BANK RAKYAT will offset losses from the drop in BANK RAKYAT's long position.| Autohome ADR vs. Air Transport Services | Autohome ADR vs. RETAIL FOOD GROUP | Autohome ADR vs. QUEEN S ROAD | Autohome ADR vs. COPLAND ROAD CAPITAL |
| BANK RAKYAT vs. INFORMATION SVC GRP | BANK RAKYAT vs. Datang International Power | BANK RAKYAT vs. CENTURIA OFFICE REIT | BANK RAKYAT vs. Autohome ADR |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |