Correlation Between Lier Chemical and Iat Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lier Chemical Co and Iat Automobile Technology, you can compare the effects of market volatilities on Lier Chemical 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 Lier Chemical with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lier Chemical and Iat Automobile.
Diversification Opportunities for Lier Chemical and Iat Automobile
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lier and Iat is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Lier Chemical 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 Lier Chemical 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 Lier Chemical 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 Lier Chemical i.e., Lier Chemical and Iat Automobile go up and down completely randomly.
Pair Corralation between Lier Chemical and Iat Automobile
Assuming the 90 days trading horizon Lier Chemical Co is expected to under-perform the Iat Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Lier Chemical Co is 2.02 times less risky than Iat Automobile. The stock trades about -0.08 of its potential returns per unit of risk. The Iat Automobile Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,325 in Iat Automobile Technology on November 1, 2024 and sell it today you would lose (152.00) from holding Iat Automobile Technology or give up 11.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lier Chemical Co vs. Iat Automobile Technology
Performance |
| Timeline |
| Lier Chemical |
| Iat Automobile Technology |
Lier Chemical and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lier Chemical and Iat Automobile
The main advantage of trading using opposite Lier Chemical and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lier Chemical 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.| Lier Chemical vs. Zijin Mining Group | Lier Chemical vs. Wanhua Chemical Group | Lier Chemical vs. Baoshan Iron Steel | Lier Chemical vs. Shandong Gold Mining |
| Iat Automobile vs. CITIC Metal Co | Iat Automobile vs. Peoples Insurance of | Iat Automobile vs. Sino Platinum Metals Co | Iat Automobile vs. Jiujiang Shanshui 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |