Correlation Between Autohome and BuzzFeed
Can any of the company-specific risk be diversified away by investing in both Autohome and BuzzFeed 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 BuzzFeed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autohome and BuzzFeed, you can compare the effects of market volatilities on Autohome and BuzzFeed 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 BuzzFeed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohome and BuzzFeed.
Diversification Opportunities for Autohome and BuzzFeed
Very poor diversification
The 3 months correlation between Autohome and BuzzFeed is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Autohome and BuzzFeed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BuzzFeed 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 BuzzFeed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BuzzFeed has no effect on the direction of Autohome i.e., Autohome and BuzzFeed go up and down completely randomly.
Pair Corralation between Autohome and BuzzFeed
Given the investment horizon of 90 days Autohome is expected to under-perform the BuzzFeed. But the stock apears to be less risky and, when comparing its historical volatility, Autohome is 8.25 times less risky than BuzzFeed. The stock trades about -0.17 of its potential returns per unit of risk. The BuzzFeed is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 6.00 in BuzzFeed on September 10, 2025 and sell it today you would lose (2.41) from holding BuzzFeed or give up 40.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 73.02% |
| Values | Daily Returns |
Autohome vs. BuzzFeed
Performance |
| Timeline |
| Autohome |
| BuzzFeed |
Autohome and BuzzFeed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autohome and BuzzFeed
The main advantage of trading using opposite Autohome and BuzzFeed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autohome position performs unexpectedly, BuzzFeed 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 BuzzFeed will offset losses from the drop in BuzzFeed's long position.The idea behind Autohome and BuzzFeed 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.| BuzzFeed vs. Zeta Network Group | BuzzFeed vs. Hall of Fame | BuzzFeed vs. Kuke Music Holding | BuzzFeed vs. Advantage Solutions |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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