Correlation Between Vivid Seats and Autohome
Can any of the company-specific risk be diversified away by investing in both Vivid Seats 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 Vivid Seats and Autohome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivid Seats and Autohome, you can compare the effects of market volatilities on Vivid Seats 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 Vivid Seats with a short position of Autohome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivid Seats and Autohome.
Diversification Opportunities for Vivid Seats and Autohome
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Vivid and Autohome is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Vivid Seats and Autohome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohome and Vivid Seats 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 Vivid Seats 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 Vivid Seats i.e., Vivid Seats and Autohome go up and down completely randomly.
Pair Corralation between Vivid Seats and Autohome
Given the investment horizon of 90 days Vivid Seats is expected to under-perform the Autohome. In addition to that, Vivid Seats is 1.16 times more volatile than Autohome. It trades about -0.1 of its total potential returns per unit of risk. Autohome is currently generating about 0.17 per unit of volatility. 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 Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Vivid Seats vs. Autohome
Performance |
| Timeline |
| Vivid Seats |
| Autohome |
Vivid Seats and Autohome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivid Seats and Autohome
The main advantage of trading using opposite Vivid Seats and Autohome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivid Seats 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.| Vivid Seats vs. Onfolio Holdings | Vivid Seats vs. EverQuote Class A | Vivid Seats vs. Asset Entities Class | Vivid Seats vs. MediaAlpha |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |