Correlation Between Iat Automobile and ChengDu Hi
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By analyzing existing cross correlation between Iat Automobile Technology and ChengDu Hi Tech Development, you can compare the effects of market volatilities on Iat Automobile and ChengDu Hi 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 Iat Automobile with a short position of ChengDu Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and ChengDu Hi.
Diversification Opportunities for Iat Automobile and ChengDu Hi
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Iat and ChengDu is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and ChengDu Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChengDu Hi Tech and Iat Automobile 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 Iat Automobile Technology are associated (or correlated) with ChengDu Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChengDu Hi Tech has no effect on the direction of Iat Automobile i.e., Iat Automobile and ChengDu Hi go up and down completely randomly.
Pair Corralation between Iat Automobile and ChengDu Hi
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 0.96 times more return on investment than ChengDu Hi. However, Iat Automobile Technology is 1.04 times less risky than ChengDu Hi. It trades about 0.0 of its potential returns per unit of risk. ChengDu Hi Tech Development is currently generating about -0.06 per unit of risk. If you would invest 1,146 in Iat Automobile Technology on October 26, 2024 and sell it today you would lose (44.00) from holding Iat Automobile Technology or give up 3.84% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Iat Automobile Technology vs. ChengDu Hi Tech Development
Performance |
Timeline |
Iat Automobile Technology |
ChengDu Hi Tech |
Iat Automobile and ChengDu Hi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Iat Automobile and ChengDu Hi
The main advantage of trading using opposite Iat Automobile and ChengDu Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, ChengDu Hi 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 ChengDu Hi will offset losses from the drop in ChengDu Hi's long position.Iat Automobile vs. Double Medical Technology | ||
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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