Correlation Between HOCHSCHILD MINING and Autohome ADR
Can any of the company-specific risk be diversified away by investing in both HOCHSCHILD MINING and Autohome ADR 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 HOCHSCHILD MINING and Autohome ADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HOCHSCHILD MINING and Autohome ADR, you can compare the effects of market volatilities on HOCHSCHILD MINING and Autohome ADR 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 HOCHSCHILD MINING with a short position of Autohome ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOCHSCHILD MINING and Autohome ADR.
Diversification Opportunities for HOCHSCHILD MINING and Autohome ADR
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HOCHSCHILD and Autohome is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding HOCHSCHILD MINING and Autohome ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohome ADR and HOCHSCHILD MINING 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 HOCHSCHILD MINING are associated (or correlated) with Autohome ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autohome ADR has no effect on the direction of HOCHSCHILD MINING i.e., HOCHSCHILD MINING and Autohome ADR go up and down completely randomly.
Pair Corralation between HOCHSCHILD MINING and Autohome ADR
Assuming the 90 days trading horizon HOCHSCHILD MINING is expected to under-perform the Autohome ADR. In addition to that, HOCHSCHILD MINING is 1.51 times more volatile than Autohome ADR. It trades about -0.03 of its total potential returns per unit of risk. Autohome ADR is currently generating about -0.02 per unit of volatility. If you would invest 2,560 in Autohome ADR on September 21, 2024 and sell it today you would lose (40.00) from holding Autohome ADR or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HOCHSCHILD MINING vs. Autohome ADR
Performance |
| Timeline |
| HOCHSCHILD MINING |
| Autohome ADR |
HOCHSCHILD MINING and Autohome ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOCHSCHILD MINING and Autohome ADR
The main advantage of trading using opposite HOCHSCHILD MINING and Autohome ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOCHSCHILD MINING position performs unexpectedly, Autohome ADR 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 ADR will offset losses from the drop in Autohome ADR's long position.| HOCHSCHILD MINING vs. MAGNUM MINING EXP | HOCHSCHILD MINING vs. Gruppo Mutuionline SpA | HOCHSCHILD MINING vs. BOS BETTER ONLINE | HOCHSCHILD MINING vs. American Airlines Group |
| Autohome ADR vs. Tencent Holdings | Autohome ADR vs. Superior Plus Corp | Autohome ADR vs. SIVERS SEMICONDUCTORS AB | Autohome ADR vs. NorAm Drilling AS |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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