Correlation Between Acorn International and SohuCom
Can any of the company-specific risk be diversified away by investing in both Acorn International 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 Acorn International and SohuCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acorn International and SohuCom, you can compare the effects of market volatilities on Acorn International 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 Acorn International with a short position of SohuCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acorn International and SohuCom.
Diversification Opportunities for Acorn International and SohuCom
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Acorn and SohuCom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Acorn International and SohuCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SohuCom and Acorn International 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 Acorn International 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 Acorn International i.e., Acorn International and SohuCom go up and down completely randomly.
Pair Corralation between Acorn International and SohuCom
If you would invest 993.00 in SohuCom on January 20, 2024 and sell it today you would earn a total of 104.00 from holding SohuCom or generate 10.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Acorn International vs. SohuCom
Performance |
| Timeline |
| Acorn International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SohuCom |
Acorn International and SohuCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acorn International and SohuCom
The main advantage of trading using opposite Acorn International and SohuCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acorn International 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.| Acorn International vs. Definitive Healthcare Corp | Acorn International vs. Kaltura | Acorn International vs. Sapiens International | Acorn International vs. Genfit |
| SohuCom vs. Snail Class A | SohuCom vs. Playstudios | SohuCom vs. Playtika Holding Corp | SohuCom vs. Doubledown InteractiveCo |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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