Correlation Between Xiangyang Automobile and Iat Automobile
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Iat Automobile Technology, you can compare the effects of market volatilities on Xiangyang 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 Xiangyang Automobile with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Iat Automobile.
Diversification Opportunities for Xiangyang Automobile and Iat Automobile
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiangyang and Iat is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing 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 Xiangyang 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 Xiangyang Automobile Bearing 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 Xiangyang Automobile i.e., Xiangyang Automobile and Iat Automobile go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Iat Automobile
Assuming the 90 days trading horizon Xiangyang Automobile is expected to generate 2.92 times less return on investment than Iat Automobile. But when comparing it to its historical volatility, Xiangyang Automobile Bearing is 1.06 times less risky than Iat Automobile. It trades about 0.08 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,042 in Iat Automobile Technology on August 25, 2024 and sell it today you would earn a total of 209.00 from holding Iat Automobile Technology or generate 20.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Iat Automobile Technology
Performance |
| Timeline |
| Xiangyang Automobile |
| Iat Automobile Technology |
Xiangyang Automobile and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Iat Automobile
The main advantage of trading using opposite Xiangyang Automobile and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang 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.| Xiangyang Automobile vs. Hainan Haiqi Transportation | Xiangyang Automobile vs. China Sports Industry | Xiangyang Automobile vs. Guangdong Brandmax Marketing | Xiangyang Automobile vs. Yindu Kitchen Equipment |
| Iat Automobile vs. Anhui Jianghuai Automobile | Iat Automobile vs. Tongyu Communication | Iat Automobile vs. CITIC Metal Co | Iat Automobile vs. Jiangxi Selon Industrial |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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