Correlation Between COPLAND ROAD and Autohome ADR
Can any of the company-specific risk be diversified away by investing in both COPLAND ROAD and Autohome ADR 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 COPLAND ROAD and Autohome ADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COPLAND ROAD CAPITAL and Autohome ADR, you can compare the effects of market volatilities on COPLAND ROAD and Autohome ADR 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 COPLAND ROAD with a short position of Autohome ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of COPLAND ROAD and Autohome ADR.
Diversification Opportunities for COPLAND ROAD and Autohome ADR
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between COPLAND and Autohome is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding COPLAND ROAD CAPITAL and Autohome ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohome ADR and COPLAND ROAD 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 COPLAND ROAD CAPITAL are associated (or correlated) with Autohome ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autohome ADR has no effect on the direction of COPLAND ROAD i.e., COPLAND ROAD and Autohome ADR go up and down completely randomly.
Pair Corralation between COPLAND ROAD and Autohome ADR
Assuming the 90 days horizon COPLAND ROAD is expected to generate 1.99 times less return on investment than Autohome ADR. In addition to that, COPLAND ROAD is 1.13 times more volatile than Autohome ADR. It trades about 0.04 of its total potential returns per unit of risk. Autohome ADR is currently generating about 0.09 per unit of volatility. If you would invest 2,200 in Autohome ADR on September 3, 2024 and sell it today you would earn a total of 320.00 from holding Autohome ADR or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.46% |
| Values | Daily Returns |
COPLAND ROAD CAPITAL vs. Autohome ADR
Performance |
| Timeline |
| COPLAND ROAD CAPITAL |
| Autohome ADR |
COPLAND ROAD and Autohome ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COPLAND ROAD and Autohome ADR
The main advantage of trading using opposite COPLAND ROAD and Autohome ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COPLAND ROAD position performs unexpectedly, Autohome ADR 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 Autohome ADR will offset losses from the drop in Autohome ADR's long position.| COPLAND ROAD vs. Merck KGaA | COPLAND ROAD vs. CanSino Biologics | COPLAND ROAD vs. Superior Plus Corp | COPLAND ROAD vs. NMI Holdings |
| Autohome ADR vs. Air Transport Services | Autohome ADR vs. RETAIL FOOD GROUP | Autohome ADR vs. QUEEN S ROAD | Autohome ADR vs. COPLAND ROAD CAPITAL |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |