Correlation Between Autohome and Taboola
Can any of the company-specific risk be diversified away by investing in both Autohome and Taboola 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 Taboola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autohome and Taboola, you can compare the effects of market volatilities on Autohome and Taboola 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 Taboola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohome and Taboola.
Diversification Opportunities for Autohome and Taboola
Good diversification
The 3 months correlation between Autohome and Taboola is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Autohome and Taboola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taboola 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 Taboola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taboola has no effect on the direction of Autohome i.e., Autohome and Taboola go up and down completely randomly.
Pair Corralation between Autohome and Taboola
Given the investment horizon of 90 days Autohome is expected to generate 1.13 times more return on investment than Taboola. However, Autohome is 1.13 times more volatile than Taboola. It trades about 0.18 of its potential returns per unit of risk. Taboola is currently generating about -0.23 per unit of risk. If you would invest 2,537 in Autohome on October 26, 2024 and sell it today you would earn a total of 165.00 from holding Autohome or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autohome vs. Taboola
Performance |
| Timeline |
| Autohome |
| Taboola |
Autohome and Taboola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autohome and Taboola
The main advantage of trading using opposite Autohome and Taboola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autohome position performs unexpectedly, Taboola 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 Taboola will offset losses from the drop in Taboola's long position.| Autohome vs. Hello Group | Autohome vs. Weibo Corp | Autohome vs. Tencent Music Entertainment | Autohome vs. DouYu International Holdings |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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