Correlation Between EBay and ATRenew
Can any of the company-specific risk be diversified away by investing in both EBay and ATRenew 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 EBay and ATRenew into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eBay Inc and ATRenew Inc DRC, you can compare the effects of market volatilities on EBay and ATRenew 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 EBay with a short position of ATRenew. Check out your portfolio center. Please also check ongoing floating volatility patterns of EBay and ATRenew.
Diversification Opportunities for EBay and ATRenew
Poor diversification
The 3 months correlation between EBay and ATRenew is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding eBay Inc and ATRenew Inc DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRenew Inc DRC and EBay 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 eBay Inc are associated (or correlated) with ATRenew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRenew Inc DRC has no effect on the direction of EBay i.e., EBay and ATRenew go up and down completely randomly.
Pair Corralation between EBay and ATRenew
Given the investment horizon of 90 days EBay is expected to generate 2.75 times less return on investment than ATRenew. But when comparing it to its historical volatility, eBay Inc is 1.71 times less risky than ATRenew. It trades about 0.12 of its potential returns per unit of risk. ATRenew Inc DRC is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 266.00 in ATRenew Inc DRC on June 11, 2025 and sell it today you would earn a total of 163.00 from holding ATRenew Inc DRC or generate 61.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
eBay Inc vs. ATRenew Inc DRC
Performance |
| Timeline |
| eBay Inc |
| ATRenew Inc DRC |
EBay and ATRenew Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EBay and ATRenew
The main advantage of trading using opposite EBay and ATRenew positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EBay position performs unexpectedly, ATRenew 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 ATRenew will offset losses from the drop in ATRenew's long position.The idea behind eBay Inc and ATRenew Inc DRC 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.| ATRenew vs. 1StdibsCom | ATRenew vs. D MARKET Electronic Services | ATRenew vs. Hour Loop | ATRenew vs. Liquidity Services |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |