Correlation Between Chuangs China and Autohome
Can any of the company-specific risk be diversified away by investing in both Chuangs China 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 Chuangs China and Autohome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chuangs China Investments and Autohome ADR, you can compare the effects of market volatilities on Chuangs China 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 Chuangs China with a short position of Autohome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and Autohome.
Diversification Opportunities for Chuangs China and Autohome
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chuangs and Autohome is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments and Autohome ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohome ADR and Chuangs China 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 Chuangs China Investments 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 ADR has no effect on the direction of Chuangs China i.e., Chuangs China and Autohome go up and down completely randomly.
Pair Corralation between Chuangs China and Autohome
If you would invest 2,378 in Autohome ADR on October 22, 2024 and sell it today you would earn a total of 22.00 from holding Autohome ADR or generate 0.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Chuangs China Investments vs. Autohome ADR
Performance |
Timeline |
Chuangs China Investments |
Autohome ADR |
Chuangs China and Autohome Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chuangs China and Autohome
The main advantage of trading using opposite Chuangs China and Autohome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China 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.Chuangs China vs. ARDAGH METAL PACDL 0001 | Chuangs China vs. Tradeweb Markets | Chuangs China vs. FLOW TRADERS LTD | Chuangs China vs. AUTO TRADER ADR |
Autohome vs. EIDESVIK OFFSHORE NK | Autohome vs. Hisense Home Appliances | Autohome vs. OFFICE DEPOT | Autohome vs. BW OFFSHORE LTD |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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