Correlation Between Autohome and Original Sixteen
Can any of the company-specific risk be diversified away by investing in both Autohome and Original Sixteen 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 Original Sixteen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autohome and Original Sixteen To, you can compare the effects of market volatilities on Autohome and Original Sixteen 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 Original Sixteen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohome and Original Sixteen.
Diversification Opportunities for Autohome and Original Sixteen
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Autohome and Original is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Autohome and Original Sixteen To in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Original Sixteen 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 Original Sixteen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Original Sixteen has no effect on the direction of Autohome i.e., Autohome and Original Sixteen go up and down completely randomly.
Pair Corralation between Autohome and Original Sixteen
If you would invest 2,239 in Autohome on November 3, 2024 and sell it today you would earn a total of 563.00 from holding Autohome or generate 25.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Autohome vs. Original Sixteen To
Performance |
| Timeline |
| Autohome |
| Original Sixteen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Autohome and Original Sixteen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autohome and Original Sixteen
The main advantage of trading using opposite Autohome and Original Sixteen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autohome position performs unexpectedly, Original Sixteen 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 Original Sixteen will offset losses from the drop in Original Sixteen's long position.| Autohome vs. Hello Group | Autohome vs. Weibo Corp | Autohome vs. Tencent Music Entertainment | Autohome vs. DouYu International Holdings |
| Original Sixteen vs. CDW Corp | Original Sixteen vs. Toro Co | Original Sixteen vs. Newell Brands | Original Sixteen vs. Skechers USA |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |