Correlation Between Autohome and Manufatura
Can any of the company-specific risk be diversified away by investing in both Autohome and Manufatura 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 Autohome and Manufatura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autohome and Manufatura de Brinquedos, you can compare the effects of market volatilities on Autohome and Manufatura 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 Autohome with a short position of Manufatura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohome and Manufatura.
Diversification Opportunities for Autohome and Manufatura
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Autohome and Manufatura is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Autohome and Manufatura de Brinquedos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manufatura de Brinquedos and Autohome 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 Autohome are associated (or correlated) with Manufatura. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manufatura de Brinquedos has no effect on the direction of Autohome i.e., Autohome and Manufatura go up and down completely randomly.
Pair Corralation between Autohome and Manufatura
If you would invest 1,579 in Autohome on October 7, 2024 and sell it today you would earn a total of 26.00 from holding Autohome or generate 1.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Autohome vs. Manufatura de Brinquedos
Performance |
Timeline |
Autohome |
Manufatura de Brinquedos |
Autohome and Manufatura Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Autohome and Manufatura
The main advantage of trading using opposite Autohome and Manufatura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autohome position performs unexpectedly, Manufatura 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 Manufatura will offset losses from the drop in Manufatura's long position.Autohome vs. METISA Metalrgica Timboense | Autohome vs. Iron Mountain Incorporated | Autohome vs. Fidelity National Information | Autohome vs. NXP Semiconductors NV |
Manufatura vs. Planet Fitness | Manufatura vs. Manufatura de Brinquedos | Manufatura vs. Energisa SA | Manufatura vs. BTG Pactual Logstica |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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