Correlation Between Autohome and ATMA Participacoes
Can any of the company-specific risk be diversified away by investing in both Autohome and ATMA Participacoes 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 ATMA Participacoes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autohome and ATMA Participacoes SA, you can compare the effects of market volatilities on Autohome and ATMA Participacoes 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 ATMA Participacoes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohome and ATMA Participacoes.
Diversification Opportunities for Autohome and ATMA Participacoes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Autohome and ATMA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Autohome and ATMA Participacoes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATMA Participacoes 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 ATMA Participacoes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATMA Participacoes has no effect on the direction of Autohome i.e., Autohome and ATMA Participacoes go up and down completely randomly.
Pair Corralation between Autohome and ATMA Participacoes
If you would invest 1,257 in Autohome on September 14, 2024 and sell it today you would earn a total of 425.00 from holding Autohome or generate 33.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Autohome vs. ATMA Participacoes SA
Performance |
| Timeline |
| Autohome |
| ATMA Participacoes |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Autohome and ATMA Participacoes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autohome and ATMA Participacoes
The main advantage of trading using opposite Autohome and ATMA Participacoes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autohome position performs unexpectedly, ATMA Participacoes 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 ATMA Participacoes will offset losses from the drop in ATMA Participacoes' long position.| Autohome vs. Nordon Indstrias Metalrgicas | Autohome vs. Uber Technologies | Autohome vs. Technos SA | Autohome vs. The Home Depot |
| ATMA Participacoes vs. Autohome | ATMA Participacoes vs. MAHLE Metal Leve | ATMA Participacoes vs. Healthpeak Properties | ATMA Participacoes vs. Iron Mountain Incorporated |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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