Correlation Between Hongrun Construction and Iat Automobile
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By analyzing existing cross correlation between Hongrun Construction Group and Iat Automobile Technology, you can compare the effects of market volatilities on Hongrun Construction 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 Hongrun Construction with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongrun Construction and Iat Automobile.
Diversification Opportunities for Hongrun Construction and Iat Automobile
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hongrun and Iat is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Hongrun Construction 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 Hongrun Construction 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 Hongrun Construction 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 Hongrun Construction i.e., Hongrun Construction and Iat Automobile go up and down completely randomly.
Pair Corralation between Hongrun Construction and Iat Automobile
Assuming the 90 days trading horizon Hongrun Construction Group is expected to under-perform the Iat Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Hongrun Construction Group is 1.73 times less risky than Iat Automobile. The stock trades about -0.01 of its potential returns per unit of risk. The Iat Automobile Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,282 in Iat Automobile Technology on August 25, 2024 and sell it today you would lose (31.00) from holding Iat Automobile Technology or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hongrun Construction Group vs. Iat Automobile Technology
Performance |
| Timeline |
| Hongrun Construction |
| Iat Automobile Technology |
Hongrun Construction and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongrun Construction and Iat Automobile
The main advantage of trading using opposite Hongrun Construction and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongrun Construction 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.| Hongrun Construction vs. Ming Yang Smart | Hongrun Construction vs. 159681 | Hongrun Construction vs. 159005 | Hongrun Construction vs. Loctek Ergonomic Technology |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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