Correlation Between Zhejiang Transfar and Iat Automobile
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By analyzing existing cross correlation between Zhejiang Transfar Co and Iat Automobile Technology, you can compare the effects of market volatilities on Zhejiang Transfar 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 Zhejiang Transfar with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Transfar and Iat Automobile.
Diversification Opportunities for Zhejiang Transfar and Iat Automobile
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Iat is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Transfar Co 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 Zhejiang Transfar 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 Zhejiang Transfar Co 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 Zhejiang Transfar i.e., Zhejiang Transfar and Iat Automobile go up and down completely randomly.
Pair Corralation between Zhejiang Transfar and Iat Automobile
Assuming the 90 days trading horizon Zhejiang Transfar is expected to generate 11.69 times less return on investment than Iat Automobile. But when comparing it to its historical volatility, Zhejiang Transfar Co is 1.86 times less risky than Iat Automobile. It trades about 0.0 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,200 in Iat Automobile Technology on September 4, 2024 and sell it today you would earn a total of 71.00 from holding Iat Automobile Technology or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Zhejiang Transfar Co vs. Iat Automobile Technology
Performance |
| Timeline |
| Zhejiang Transfar |
| Iat Automobile Technology |
Zhejiang Transfar and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Transfar and Iat Automobile
The main advantage of trading using opposite Zhejiang Transfar and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Transfar 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.| Zhejiang Transfar vs. Iat Automobile Technology | Zhejiang Transfar vs. Chahua Modern Housewares | Zhejiang Transfar vs. Haima Automobile Group | Zhejiang Transfar vs. Shenzhen Kexin Communication |
| Iat Automobile vs. Cultural Investment Holdings | Iat Automobile vs. Gome Telecom Equipment | Iat Automobile vs. Bus Online Co | Iat Automobile vs. Holitech Technology Co |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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