Correlation Between Autohome and Globus Medical,
Can any of the company-specific risk be diversified away by investing in both Autohome and Globus Medical, 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 Globus Medical, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autohome and Globus Medical,, you can compare the effects of market volatilities on Autohome and Globus Medical, 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 Globus Medical,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohome and Globus Medical,.
Diversification Opportunities for Autohome and Globus Medical,
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Autohome and Globus is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Autohome and Globus Medical, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globus Medical, 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 are associated (or correlated) with Globus Medical,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globus Medical, has no effect on the direction of Autohome i.e., Autohome and Globus Medical, go up and down completely randomly.
Pair Corralation between Autohome and Globus Medical,
Assuming the 90 days trading horizon Autohome is expected to generate 2.99 times less return on investment than Globus Medical,. In addition to that, Autohome is 2.55 times more volatile than Globus Medical,. It trades about 0.02 of its total potential returns per unit of risk. Globus Medical, is currently generating about 0.18 per unit of volatility. If you would invest 4,900 in Globus Medical, on October 29, 2024 and sell it today you would earn a total of 1,967 from holding Globus Medical, or generate 40.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 23.57% |
| Values | Daily Returns |
Autohome vs. Globus Medical,
Performance |
| Timeline |
| Autohome |
| Globus Medical, |
Autohome and Globus Medical, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autohome and Globus Medical,
The main advantage of trading using opposite Autohome and Globus Medical, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autohome position performs unexpectedly, Globus Medical, 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 Globus Medical, will offset losses from the drop in Globus Medical,'s long position.| Autohome vs. Mangels Industrial SA | Autohome vs. Applied Materials, | Autohome vs. MAHLE Metal Leve | Autohome vs. United States Steel |
| Globus Medical, vs. New Oriental Education | Globus Medical, vs. Clover Health Investments, | Globus Medical, vs. Molson Coors Beverage | Globus Medical, vs. Delta Air Lines |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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