Correlation Between Chengdu Xingrong and Iat Automobile
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Iat Automobile Technology, you can compare the effects of market volatilities on Chengdu Xingrong 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 Chengdu Xingrong with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Iat Automobile.
Diversification Opportunities for Chengdu Xingrong and Iat Automobile
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chengdu and Iat is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment 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 Chengdu Xingrong 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 Chengdu Xingrong Investment 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 Chengdu Xingrong i.e., Chengdu Xingrong and Iat Automobile go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Iat Automobile
Assuming the 90 days trading horizon Chengdu Xingrong is expected to generate 3.06 times less return on investment than Iat Automobile. But when comparing it to its historical volatility, Chengdu Xingrong Investment is 1.8 times less risky than Iat Automobile. It trades about 0.07 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 839.00 in Iat Automobile Technology on October 18, 2024 and sell it today you would earn a total of 318.00 from holding Iat Automobile Technology or generate 37.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Iat Automobile Technology
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Iat Automobile Technology |
Chengdu Xingrong and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Iat Automobile
The main advantage of trading using opposite Chengdu Xingrong and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong 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.| Chengdu Xingrong vs. Changjiang Jinggong Steel | Chengdu Xingrong vs. Hangzhou Guotai Environmental | Chengdu Xingrong vs. Tonghua Grape Wine | Chengdu Xingrong vs. Yindu Kitchen Equipment |
| Iat Automobile vs. Nuode Investment Co | Iat Automobile vs. Gifore Agricultural Machinery | Iat Automobile vs. Chengdu Xingrong Investment | Iat Automobile vs. Nanxing Furniture Machinery |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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