Correlation Between SWISS WATER and Autohome ADR

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SWISS WATER 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 SWISS WATER and Autohome ADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SWISS WATER DECAFFCOFFEE and Autohome ADR, you can compare the effects of market volatilities on SWISS WATER 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 SWISS WATER with a short position of Autohome ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of SWISS WATER and Autohome ADR.

Diversification Opportunities for SWISS WATER and Autohome ADR

SWISSAutohomeDiversified AwaySWISSAutohomeDiversified Away100%
-0.26
  Correlation Coefficient

Very good diversification

The 3 months correlation between SWISS and Autohome is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding SWISS WATER DECAFFCOFFEE and Autohome ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohome ADR and SWISS WATER 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 SWISS WATER DECAFFCOFFEE 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 SWISS WATER i.e., SWISS WATER and Autohome ADR go up and down completely randomly.

Pair Corralation between SWISS WATER and Autohome ADR

Assuming the 90 days horizon SWISS WATER DECAFFCOFFEE is expected to generate 1.01 times more return on investment than Autohome ADR. However, SWISS WATER is 1.01 times more volatile than Autohome ADR. It trades about 0.03 of its potential returns per unit of risk. Autohome ADR is currently generating about 0.0 per unit of risk. If you would invest  193.00  in SWISS WATER DECAFFCOFFEE on October 31, 2024 and sell it today you would earn a total of  35.00  from holding SWISS WATER DECAFFCOFFEE or generate 18.13% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

SWISS WATER DECAFFCOFFEE  vs.  Autohome ADR

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10-50510
JavaScript chart by amCharts 3.21.157RD 8AHB
       Timeline  
SWISS WATER DECAFFCOFFEE 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days SWISS WATER DECAFFCOFFEE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan2.32.42.52.62.72.8
Autohome ADR 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Autohome ADR are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, Autohome ADR may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan2323.52424.52525.52626.5

SWISS WATER and Autohome ADR Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.87-3.65-2.43-1.2-0.01941.122.293.454.615.78 0.0350.0400.0450.050
JavaScript chart by amCharts 3.21.157RD 8AHB
       Returns  

Pair Trading with SWISS WATER and Autohome ADR

The main advantage of trading using opposite SWISS WATER and Autohome ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SWISS WATER 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.
The idea behind SWISS WATER DECAFFCOFFEE and Autohome ADR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

Other Complementary Tools

Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Transaction History
View history of all your transactions and understand their impact on performance


 

Trending Assets