Correlation Between Iat Automobile and INKON Life
Specify exactly 2 symbols:
By analyzing existing cross correlation between Iat Automobile Technology and INKON Life Technology, you can compare the effects of market volatilities on Iat Automobile and INKON Life 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 INKON Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and INKON Life.
Diversification Opportunities for Iat Automobile and INKON Life
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iat and INKON is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and INKON Life Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INKON Life Technology 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 INKON Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INKON Life Technology has no effect on the direction of Iat Automobile i.e., Iat Automobile and INKON Life go up and down completely randomly.
Pair Corralation between Iat Automobile and INKON Life
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.07 times more return on investment than INKON Life. However, Iat Automobile is 1.07 times more volatile than INKON Life Technology. It trades about 0.12 of its potential returns per unit of risk. INKON Life Technology is currently generating about 0.09 per unit of risk. If you would invest 888.00 in Iat Automobile Technology on September 25, 2024 and sell it today you would earn a total of 257.00 from holding Iat Automobile Technology or generate 28.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Iat Automobile Technology vs. INKON Life Technology
Performance |
Timeline |
Iat Automobile Technology |
INKON Life Technology |
Iat Automobile and INKON Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Iat Automobile and INKON Life
The main advantage of trading using opposite Iat Automobile and INKON Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, INKON Life 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 INKON Life will offset losses from the drop in INKON Life's long position.Iat Automobile vs. Hainan Airlines Co | Iat Automobile vs. Fuzhou Rockchip Electronics | Iat Automobile vs. Dongnan Electronics Co | Iat Automobile vs. Suzhou Xingye Material |
INKON Life vs. China Publishing Media | INKON Life vs. Mango Excellent Media | INKON Life vs. China National Software | INKON Life vs. Chengdu B ray Media |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |