Correlation Between Iat Automobile and Soochow Securities
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By analyzing existing cross correlation between Iat Automobile Technology and Soochow Securities Co, you can compare the effects of market volatilities on Iat Automobile and Soochow Securities 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 Soochow Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Soochow Securities.
Diversification Opportunities for Iat Automobile and Soochow Securities
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Iat and Soochow is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Soochow Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soochow Securities 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 Soochow Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soochow Securities has no effect on the direction of Iat Automobile i.e., Iat Automobile and Soochow Securities go up and down completely randomly.
Pair Corralation between Iat Automobile and Soochow Securities
Assuming the 90 days trading horizon Iat Automobile Technology is expected to under-perform the Soochow Securities. In addition to that, Iat Automobile is 1.96 times more volatile than Soochow Securities Co. It trades about -0.24 of its total potential returns per unit of risk. Soochow Securities Co is currently generating about -0.31 per unit of volatility. If you would invest 825.00 in Soochow Securities Co on October 11, 2024 and sell it today you would lose (90.00) from holding Soochow Securities Co or give up 10.91% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Iat Automobile Technology vs. Soochow Securities Co
Performance |
Timeline |
Iat Automobile Technology |
Soochow Securities |
Iat Automobile and Soochow Securities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Iat Automobile and Soochow Securities
The main advantage of trading using opposite Iat Automobile and Soochow Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Soochow Securities 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 Soochow Securities will offset losses from the drop in Soochow Securities' long position.Iat Automobile vs. Shandong Iron and | Iat Automobile vs. Qiaoyin Environmental Tech | Iat Automobile vs. StarPower Semiconductor | Iat Automobile vs. Tongxing Environmental Protection |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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