Correlation Between Liberty Tripadvisor and Autohome
Can any of the company-specific risk be diversified away by investing in both Liberty Tripadvisor 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 Liberty Tripadvisor and Autohome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Tripadvisor Holdings and Autohome, you can compare the effects of market volatilities on Liberty Tripadvisor 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 Liberty Tripadvisor with a short position of Autohome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Tripadvisor and Autohome.
Diversification Opportunities for Liberty Tripadvisor and Autohome
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Liberty and Autohome is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Tripadvisor Holdings and Autohome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohome and Liberty Tripadvisor 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 Liberty Tripadvisor Holdings 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 Liberty Tripadvisor i.e., Liberty Tripadvisor and Autohome go up and down completely randomly.
Pair Corralation between Liberty Tripadvisor and Autohome
If you would invest 2,622 in Autohome on November 5, 2024 and sell it today you would earn a total of 180.00 from holding Autohome or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Liberty Tripadvisor Holdings vs. Autohome
Performance |
| Timeline |
| Liberty Tripadvisor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Autohome |
Liberty Tripadvisor and Autohome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Tripadvisor and Autohome
The main advantage of trading using opposite Liberty Tripadvisor and Autohome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Tripadvisor 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.| Liberty Tripadvisor vs. Comscore | Liberty Tripadvisor vs. Cheetah Mobile | Liberty Tripadvisor vs. EverQuote Class A | Liberty Tripadvisor vs. Onfolio Holdings |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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