Correlation Between Mliuz SA and Autohome
Can any of the company-specific risk be diversified away by investing in both Mliuz SA and Autohome 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 Mliuz SA and Autohome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mliuz SA and Autohome, you can compare the effects of market volatilities on Mliuz SA and Autohome 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 Mliuz SA with a short position of Autohome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mliuz SA and Autohome.
Diversification Opportunities for Mliuz SA and Autohome
Significant diversification
The 3 months correlation between Mliuz and Autohome is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Mliuz SA and Autohome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohome and Mliuz SA 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 Mliuz SA are associated (or correlated) with Autohome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autohome has no effect on the direction of Mliuz SA i.e., Mliuz SA and Autohome go up and down completely randomly.
Pair Corralation between Mliuz SA and Autohome
Assuming the 90 days trading horizon Mliuz SA is expected to generate 1.48 times more return on investment than Autohome. However, Mliuz SA is 1.48 times more volatile than Autohome. It trades about 0.09 of its potential returns per unit of risk. Autohome is currently generating about 0.09 per unit of risk. If you would invest 338.00 in Mliuz SA on November 18, 2024 and sell it today you would earn a total of 55.00 from holding Mliuz SA or generate 16.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.36% |
| Values | Daily Returns |
Mliuz SA vs. Autohome
Performance |
| Timeline |
| Mliuz SA |
| Autohome |
Mliuz SA and Autohome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mliuz SA and Autohome
The main advantage of trading using opposite Mliuz SA and Autohome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mliuz SA position performs unexpectedly, Autohome 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 will offset losses from the drop in Autohome's long position.The idea behind Mliuz SA and Autohome pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Autohome vs. Pet Center Comrcio | Autohome vs. Locaweb Servios de | Autohome vs. Aeris Indstria e | Autohome vs. BTG Pactual Logstica |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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