Correlation Between Bet At and Autohome ADR
Can any of the company-specific risk be diversified away by investing in both Bet At 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 Bet At and Autohome ADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between bet at home AG and Autohome ADR, you can compare the effects of market volatilities on Bet At 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 Bet At with a short position of Autohome ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and Autohome ADR.
Diversification Opportunities for Bet At and Autohome ADR
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bet and Autohome is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and Autohome ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohome ADR and Bet At 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 bet at home AG 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 Bet At i.e., Bet At and Autohome ADR go up and down completely randomly.
Pair Corralation between Bet At and Autohome ADR
Assuming the 90 days trading horizon bet at home AG is expected to under-perform the Autohome ADR. In addition to that, Bet At is 1.24 times more volatile than Autohome ADR. It trades about -0.03 of its total potential returns per unit of risk. Autohome ADR is currently generating about 0.01 per unit of volatility. If you would invest 2,721 in Autohome ADR on September 3, 2024 and sell it today you would lose (201.00) from holding Autohome ADR or give up 7.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
bet at home AG vs. Autohome ADR
Performance |
| Timeline |
| bet at home |
| Autohome ADR |
Bet At and Autohome ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet At and Autohome ADR
The main advantage of trading using opposite Bet At and Autohome ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At 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.| Bet At vs. UNIVMUSIC GRPADR050 | Bet At vs. MCEWEN MINING INC | Bet At vs. Performance Food Group | Bet At vs. HF FOODS GRP |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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