Correlation Between Autohome ADR and HOCHSCHILD MINING
Can any of the company-specific risk be diversified away by investing in both Autohome ADR and HOCHSCHILD MINING 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 HOCHSCHILD MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autohome ADR and HOCHSCHILD MINING, you can compare the effects of market volatilities on Autohome ADR and HOCHSCHILD MINING 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 HOCHSCHILD MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohome ADR and HOCHSCHILD MINING.
Diversification Opportunities for Autohome ADR and HOCHSCHILD MINING
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Autohome and HOCHSCHILD is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Autohome ADR and HOCHSCHILD MINING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOCHSCHILD MINING 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 HOCHSCHILD MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOCHSCHILD MINING has no effect on the direction of Autohome ADR i.e., Autohome ADR and HOCHSCHILD MINING go up and down completely randomly.
Pair Corralation between Autohome ADR and HOCHSCHILD MINING
Assuming the 90 days trading horizon Autohome ADR is expected to generate 0.66 times more return on investment than HOCHSCHILD MINING. However, Autohome ADR is 1.51 times less risky than HOCHSCHILD MINING. It trades about -0.02 of its potential returns per unit of risk. HOCHSCHILD MINING is currently generating about -0.03 per unit of risk. If you would invest 2,560 in Autohome ADR on September 21, 2024 and sell it today you would lose (40.00) from holding Autohome ADR or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autohome ADR vs. HOCHSCHILD MINING
Performance |
| Timeline |
| Autohome ADR |
| HOCHSCHILD MINING |
Autohome ADR and HOCHSCHILD MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autohome ADR and HOCHSCHILD MINING
The main advantage of trading using opposite Autohome ADR and HOCHSCHILD MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autohome ADR position performs unexpectedly, HOCHSCHILD MINING 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 HOCHSCHILD MINING will offset losses from the drop in HOCHSCHILD MINING's long position.| Autohome ADR vs. Tencent Holdings | Autohome ADR vs. Superior Plus Corp | Autohome ADR vs. SIVERS SEMICONDUCTORS AB | Autohome ADR vs. NorAm Drilling AS |
| HOCHSCHILD MINING vs. MAGNUM MINING EXP | HOCHSCHILD MINING vs. Gruppo Mutuionline SpA | HOCHSCHILD MINING vs. BOS BETTER ONLINE | HOCHSCHILD MINING vs. American Airlines Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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