Correlation Between Ningbo Kangqiang and Iat Automobile
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By analyzing existing cross correlation between Ningbo Kangqiang Electronics and Iat Automobile Technology, you can compare the effects of market volatilities on Ningbo Kangqiang 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 Ningbo Kangqiang with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Kangqiang and Iat Automobile.
Diversification Opportunities for Ningbo Kangqiang and Iat Automobile
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningbo and Iat is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Kangqiang Electronics 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 Ningbo Kangqiang 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 Ningbo Kangqiang Electronics 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 Ningbo Kangqiang i.e., Ningbo Kangqiang and Iat Automobile go up and down completely randomly.
Pair Corralation between Ningbo Kangqiang and Iat Automobile
Assuming the 90 days trading horizon Ningbo Kangqiang Electronics is expected to generate 1.1 times more return on investment than Iat Automobile. However, Ningbo Kangqiang is 1.1 times more volatile than Iat Automobile Technology. It trades about 0.15 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about -0.04 per unit of risk. If you would invest 1,430 in Ningbo Kangqiang Electronics on October 16, 2024 and sell it today you would earn a total of 355.00 from holding Ningbo Kangqiang Electronics or generate 24.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Kangqiang Electronics vs. Iat Automobile Technology
Performance |
| Timeline |
| Ningbo Kangqiang Ele |
| Iat Automobile Technology |
Ningbo Kangqiang and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Kangqiang and Iat Automobile
The main advantage of trading using opposite Ningbo Kangqiang and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Kangqiang 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.| Ningbo Kangqiang vs. Cloud Live Technology | Ningbo Kangqiang vs. Nanjing Putian Telecommunications | Ningbo Kangqiang vs. Tianjin Realty Development | Ningbo Kangqiang vs. Shenzhen Coship Electronics |
| Iat Automobile vs. Digiwin Software Co | Iat Automobile vs. Guangdong Xiongsu Technology | Iat Automobile vs. Ningbo Kangqiang Electronics | Iat Automobile vs. Hubei Forbon Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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