Correlation Between Autohome and HAVILAH RESOURCES
Can any of the company-specific risk be diversified away by investing in both Autohome and HAVILAH RESOURCES 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 and HAVILAH RESOURCES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autohome ADR and HAVILAH RESOURCES, you can compare the effects of market volatilities on Autohome and HAVILAH RESOURCES 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 with a short position of HAVILAH RESOURCES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohome and HAVILAH RESOURCES.
Diversification Opportunities for Autohome and HAVILAH RESOURCES
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Autohome and HAVILAH is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Autohome ADR and HAVILAH RESOURCES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAVILAH RESOURCES and Autohome 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 HAVILAH RESOURCES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAVILAH RESOURCES has no effect on the direction of Autohome i.e., Autohome and HAVILAH RESOURCES go up and down completely randomly.
Pair Corralation between Autohome and HAVILAH RESOURCES
Assuming the 90 days trading horizon Autohome ADR is expected to under-perform the HAVILAH RESOURCES. In addition to that, Autohome is 1.06 times more volatile than HAVILAH RESOURCES. It trades about -0.06 of its total potential returns per unit of risk. HAVILAH RESOURCES is currently generating about 0.21 per unit of volatility. If you would invest 11.00 in HAVILAH RESOURCES on September 2, 2024 and sell it today you would earn a total of 1.00 from holding HAVILAH RESOURCES or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autohome ADR vs. HAVILAH RESOURCES
Performance |
| Timeline |
| Autohome ADR |
| HAVILAH RESOURCES |
Autohome and HAVILAH RESOURCES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autohome and HAVILAH RESOURCES
The main advantage of trading using opposite Autohome and HAVILAH RESOURCES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autohome position performs unexpectedly, HAVILAH RESOURCES 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 HAVILAH RESOURCES will offset losses from the drop in HAVILAH RESOURCES's long position.| Autohome vs. Alphabet Class A | Autohome vs. Tencent Holdings | Autohome vs. Prosus NV | Autohome vs. AIRBNB INC DL 01 |
| HAVILAH RESOURCES vs. PENN NATL GAMING | HAVILAH RESOURCES vs. Diamyd Medical AB | HAVILAH RESOURCES vs. HOCHSCHILD MINING | HAVILAH RESOURCES vs. Merit Medical Systems |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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