Correlation Between Tongling Nonferrous and Iat Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tongling Nonferrous Metals and Iat Automobile Technology, you can compare the effects of market volatilities on Tongling Nonferrous 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 Tongling Nonferrous with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongling Nonferrous and Iat Automobile.
Diversification Opportunities for Tongling Nonferrous and Iat Automobile
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tongling and Iat is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Tongling Nonferrous Metals 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 Tongling Nonferrous 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 Tongling Nonferrous Metals 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 Tongling Nonferrous i.e., Tongling Nonferrous and Iat Automobile go up and down completely randomly.
Pair Corralation between Tongling Nonferrous and Iat Automobile
Assuming the 90 days trading horizon Tongling Nonferrous Metals is expected to generate 0.33 times more return on investment than Iat Automobile. However, Tongling Nonferrous Metals is 3.05 times less risky than Iat Automobile. It trades about -0.31 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about -0.19 per unit of risk. If you would invest 345.00 in Tongling Nonferrous Metals on October 14, 2024 and sell it today you would lose (23.00) from holding Tongling Nonferrous Metals or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongling Nonferrous Metals vs. Iat Automobile Technology
Performance |
| Timeline |
| Tongling Nonferrous |
| Iat Automobile Technology |
Tongling Nonferrous and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongling Nonferrous and Iat Automobile
The main advantage of trading using opposite Tongling Nonferrous and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongling Nonferrous 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.| Tongling Nonferrous vs. PKU HealthCare Corp | Tongling Nonferrous vs. Sanbo Hospital Management | Tongling Nonferrous vs. Healthcare Co | Tongling Nonferrous vs. Mingchen Health Co |
| Iat Automobile vs. Zhongrun Resources Investment | Iat Automobile vs. Allgens Medical Technology | Iat Automobile vs. Shanghai Material Trading | Iat Automobile vs. Harbin Hatou Investment |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |