Correlation Between Autohome ADR and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Autohome ADR and MCEWEN 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 MCEWEN 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 MCEWEN MINING INC, you can compare the effects of market volatilities on Autohome ADR and MCEWEN 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 MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohome ADR and MCEWEN MINING.
Diversification Opportunities for Autohome ADR and MCEWEN MINING
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Autohome and MCEWEN is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Autohome ADR and MCEWEN MINING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCEWEN MINING INC 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 MCEWEN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCEWEN MINING INC has no effect on the direction of Autohome ADR i.e., Autohome ADR and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Autohome ADR and MCEWEN MINING
Assuming the 90 days trading horizon Autohome ADR is expected to generate 0.56 times more return on investment than MCEWEN MINING. However, Autohome ADR is 1.8 times less risky than MCEWEN MINING. It trades about 0.01 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.2 per unit of risk. If you would invest 2,600 in Autohome ADR on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Autohome ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autohome ADR vs. MCEWEN MINING INC
Performance |
| Timeline |
| Autohome ADR |
| MCEWEN MINING INC |
Autohome ADR and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autohome ADR and MCEWEN MINING
The main advantage of trading using opposite Autohome ADR and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autohome ADR position performs unexpectedly, MCEWEN 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 MCEWEN MINING will offset losses from the drop in MCEWEN MINING's long position.| Autohome ADR vs. SCIENCE IN SPORT | Autohome ADR vs. Air Transport Services | Autohome ADR vs. AVITA Medical | Autohome ADR vs. Fukuyama Transporting Co |
| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB | MCEWEN MINING vs. Talanx AG |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |