Correlation Between Haima Automobile and Iat Automobile
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By analyzing existing cross correlation between Haima Automobile Group and Iat Automobile Technology, you can compare the effects of market volatilities on Haima Automobile and Iat Automobile 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 Haima Automobile with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Iat Automobile.
Diversification Opportunities for Haima Automobile and Iat Automobile
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Haima and Iat is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile Technology and Haima 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 Haima Automobile Group are associated (or correlated) with Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of Haima Automobile i.e., Haima Automobile and Iat Automobile go up and down completely randomly.
Pair Corralation between Haima Automobile and Iat Automobile
Assuming the 90 days trading horizon Haima Automobile Group is expected to generate 1.59 times more return on investment than Iat Automobile. However, Haima Automobile is 1.59 times more volatile than Iat Automobile Technology. It trades about 0.11 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.06 per unit of risk. If you would invest 399.00 in Haima Automobile Group on August 29, 2024 and sell it today you would earn a total of 44.00 from holding Haima Automobile Group or generate 11.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Iat Automobile Technology
Performance |
| Timeline |
| Haima Automobile |
| Iat Automobile Technology |
Haima Automobile and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Iat Automobile
The main advantage of trading using opposite Haima Automobile and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile position performs unexpectedly, Iat Automobile 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 Iat Automobile will offset losses from the drop in Iat Automobile's long position.| Haima Automobile vs. Lutian Machinery Co | Haima Automobile vs. China Longyuan Power | Haima Automobile vs. Changshu Tongrun Auto | Haima Automobile vs. PetroChina Co Ltd |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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