Correlation Between Autohome and Enthusiast Gaming
Can any of the company-specific risk be diversified away by investing in both Autohome and Enthusiast Gaming 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 Enthusiast Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autohome and Enthusiast Gaming Holdings, you can compare the effects of market volatilities on Autohome and Enthusiast Gaming 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 Enthusiast Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohome and Enthusiast Gaming.
Diversification Opportunities for Autohome and Enthusiast Gaming
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Autohome and Enthusiast is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Autohome and Enthusiast Gaming Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enthusiast Gaming 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 Enthusiast Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enthusiast Gaming has no effect on the direction of Autohome i.e., Autohome and Enthusiast Gaming go up and down completely randomly.
Pair Corralation between Autohome and Enthusiast Gaming
If you would invest 61.00 in Enthusiast Gaming Holdings on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Enthusiast Gaming Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Autohome vs. Enthusiast Gaming Holdings
Performance |
| Timeline |
| Autohome |
| Enthusiast Gaming |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Autohome and Enthusiast Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autohome and Enthusiast Gaming
The main advantage of trading using opposite Autohome and Enthusiast Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autohome position performs unexpectedly, Enthusiast Gaming 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 Enthusiast Gaming will offset losses from the drop in Enthusiast Gaming's long position.| Autohome vs. Hello Group | Autohome vs. Weibo Corp | Autohome vs. Tencent Music Entertainment | Autohome vs. DouYu International Holdings |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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