Correlation Between Vinci S and Autohome ADR
Can any of the company-specific risk be diversified away by investing in both Vinci S 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 Vinci S and Autohome ADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vinci S A and Autohome ADR, you can compare the effects of market volatilities on Vinci S 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 Vinci S with a short position of Autohome ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vinci S and Autohome ADR.
Diversification Opportunities for Vinci S and Autohome ADR
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vinci and Autohome is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Vinci S A and Autohome ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohome ADR and Vinci S 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 Vinci S A 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 Vinci S i.e., Vinci S and Autohome ADR go up and down completely randomly.
Pair Corralation between Vinci S and Autohome ADR
Assuming the 90 days horizon Vinci S A is expected to under-perform the Autohome ADR. But the stock apears to be less risky and, when comparing its historical volatility, Vinci S A is 1.69 times less risky than Autohome ADR. The stock trades about -0.04 of its potential returns per unit of risk. The Autohome ADR is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,384 in Autohome ADR on September 3, 2024 and sell it today you would earn a total of 136.00 from holding Autohome ADR or generate 5.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vinci S A vs. Autohome ADR
Performance |
| Timeline |
| Vinci S A |
| Autohome ADR |
Vinci S and Autohome ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vinci S and Autohome ADR
The main advantage of trading using opposite Vinci S and Autohome ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vinci S 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.| Vinci S vs. Larsen Toubro Limited | Vinci S vs. China Railway Group | Vinci S vs. China Communications Construction | Vinci S vs. Superior Plus Corp |
| Autohome ADR vs. Air Transport Services | Autohome ADR vs. RETAIL FOOD GROUP | Autohome ADR vs. QUEEN S ROAD | Autohome ADR vs. COPLAND ROAD CAPITAL |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |