Correlation Between SVB Financial and Autohome
Can any of the company-specific risk be diversified away by investing in both SVB Financial 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 SVB Financial and Autohome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SVB Financial Group and Autohome, you can compare the effects of market volatilities on SVB Financial 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 SVB Financial with a short position of Autohome. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVB Financial and Autohome.
Diversification Opportunities for SVB Financial and Autohome
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SVB and Autohome is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SVB Financial Group and Autohome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohome and SVB Financial 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 SVB Financial Group 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 SVB Financial i.e., SVB Financial and Autohome go up and down completely randomly.
Pair Corralation between SVB Financial and Autohome
If you would invest 1,353 in Autohome on September 2, 2024 and sell it today you would earn a total of 284.00 from holding Autohome or generate 20.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 89.78% |
| Values | Daily Returns |
SVB Financial Group vs. Autohome
Performance |
| Timeline |
| SVB Financial Group |
| Autohome |
SVB Financial and Autohome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SVB Financial and Autohome
The main advantage of trading using opposite SVB Financial and Autohome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVB Financial 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.| SVB Financial vs. Ita Unibanco Holding | SVB Financial vs. Banco Santander SA | SVB Financial vs. Itasa Investimentos |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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