Correlation Between Autohome and 36Kr Holdings
Can any of the company-specific risk be diversified away by investing in both Autohome and 36Kr Holdings 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 36Kr Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autohome and 36Kr Holdings, you can compare the effects of market volatilities on Autohome and 36Kr Holdings 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 36Kr Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohome and 36Kr Holdings.
Diversification Opportunities for Autohome and 36Kr Holdings
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Autohome and 36Kr is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Autohome and 36Kr Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 36Kr Holdings 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 36Kr Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 36Kr Holdings has no effect on the direction of Autohome i.e., Autohome and 36Kr Holdings go up and down completely randomly.
Pair Corralation between Autohome and 36Kr Holdings
Given the investment horizon of 90 days Autohome is expected to generate 0.48 times more return on investment than 36Kr Holdings. However, Autohome is 2.1 times less risky than 36Kr Holdings. It trades about 0.0 of its potential returns per unit of risk. 36Kr Holdings is currently generating about -0.07 per unit of risk. If you would invest 3,206 in Autohome on August 31, 2024 and sell it today you would lose (455.00) from holding Autohome or give up 14.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Autohome vs. 36Kr Holdings
Performance |
| Timeline |
| Autohome |
| 36Kr Holdings |
Autohome and 36Kr Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autohome and 36Kr Holdings
The main advantage of trading using opposite Autohome and 36Kr Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autohome position performs unexpectedly, 36Kr Holdings 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 36Kr Holdings will offset losses from the drop in 36Kr Holdings' long position.| Autohome vs. Hello Group | Autohome vs. Weibo Corp | Autohome vs. Tencent Music Entertainment | Autohome vs. DouYu International Holdings |
| 36Kr Holdings vs. Onfolio Holdings | 36Kr Holdings vs. Asset Entities Class | 36Kr Holdings vs. IZEA Inc | 36Kr Holdings vs. MediaAlpha |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |