Correlation Between TRADEDOUBLER and AUTO TRADER
Can any of the company-specific risk be diversified away by investing in both TRADEDOUBLER and AUTO TRADER 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 TRADEDOUBLER and AUTO TRADER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRADEDOUBLER AB SK and AUTO TRADER ADR, you can compare the effects of market volatilities on TRADEDOUBLER and AUTO TRADER 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 TRADEDOUBLER with a short position of AUTO TRADER. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRADEDOUBLER and AUTO TRADER.
Diversification Opportunities for TRADEDOUBLER and AUTO TRADER
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TRADEDOUBLER and AUTO is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding TRADEDOUBLER AB SK and AUTO TRADER ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUTO TRADER ADR and TRADEDOUBLER 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 TRADEDOUBLER AB SK are associated (or correlated) with AUTO TRADER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUTO TRADER ADR has no effect on the direction of TRADEDOUBLER i.e., TRADEDOUBLER and AUTO TRADER go up and down completely randomly.
Pair Corralation between TRADEDOUBLER and AUTO TRADER
Assuming the 90 days horizon TRADEDOUBLER AB SK is expected to generate 2.11 times more return on investment than AUTO TRADER. However, TRADEDOUBLER is 2.11 times more volatile than AUTO TRADER ADR. It trades about 0.02 of its potential returns per unit of risk. AUTO TRADER ADR is currently generating about -0.11 per unit of risk. If you would invest 27.00 in TRADEDOUBLER AB SK on August 28, 2024 and sell it today you would earn a total of 0.00 from holding TRADEDOUBLER AB SK or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRADEDOUBLER AB SK vs. AUTO TRADER ADR
Performance |
| Timeline |
| TRADEDOUBLER AB SK |
| AUTO TRADER ADR |
TRADEDOUBLER and AUTO TRADER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRADEDOUBLER and AUTO TRADER
The main advantage of trading using opposite TRADEDOUBLER and AUTO TRADER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRADEDOUBLER position performs unexpectedly, AUTO TRADER 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 AUTO TRADER will offset losses from the drop in AUTO TRADER's long position.| TRADEDOUBLER vs. The Interpublic Group | TRADEDOUBLER vs. Superior Plus Corp | TRADEDOUBLER vs. NMI Holdings | TRADEDOUBLER vs. Origin Agritech |
| AUTO TRADER vs. TITANIUM TRANSPORTGROUP | AUTO TRADER vs. Tencent Music Entertainment | AUTO TRADER vs. NTG Nordic Transport | AUTO TRADER vs. Fukuyama Transporting Co |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| 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 | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |