Correlation Between AirNet Technology and SohuCom
Can any of the company-specific risk be diversified away by investing in both AirNet Technology and SohuCom 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 AirNet Technology and SohuCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AirNet Technology and SohuCom, you can compare the effects of market volatilities on AirNet Technology and SohuCom 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 AirNet Technology with a short position of SohuCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of AirNet Technology and SohuCom.
Diversification Opportunities for AirNet Technology and SohuCom
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AirNet and SohuCom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AirNet Technology and SohuCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SohuCom and AirNet Technology 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 AirNet Technology are associated (or correlated) with SohuCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SohuCom has no effect on the direction of AirNet Technology i.e., AirNet Technology and SohuCom go up and down completely randomly.
Pair Corralation between AirNet Technology and SohuCom
If you would invest 936.00 in SohuCom on January 19, 2024 and sell it today you would earn a total of 155.00 from holding SohuCom or generate 16.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AirNet Technology vs. SohuCom
Performance |
| Timeline |
| AirNet Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SohuCom |
AirNet Technology and SohuCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AirNet Technology and SohuCom
The main advantage of trading using opposite AirNet Technology and SohuCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AirNet Technology position performs unexpectedly, SohuCom 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 SohuCom will offset losses from the drop in SohuCom's long position.| AirNet Technology vs. Acumen Pharmaceuticals | AirNet Technology vs. BioNTech SE | AirNet Technology vs. Abcellera BiologicsInc | AirNet Technology vs. Sensient Technologies |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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