Correlation Between Guangdong Jingyi and Iat Automobile
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Iat Automobile Technology, you can compare the effects of market volatilities on Guangdong Jingyi 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 Guangdong Jingyi with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Iat Automobile.
Diversification Opportunities for Guangdong Jingyi and Iat Automobile
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Iat is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal 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 Guangdong Jingyi 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 Guangdong Jingyi Metal 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 Guangdong Jingyi i.e., Guangdong Jingyi and Iat Automobile go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Iat Automobile
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.77 times more return on investment than Iat Automobile. However, Guangdong Jingyi Metal is 1.3 times less risky than Iat Automobile. It trades about 0.16 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about -0.02 per unit of risk. If you would invest 669.00 in Guangdong Jingyi Metal on October 29, 2024 and sell it today you would earn a total of 54.00 from holding Guangdong Jingyi Metal or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Iat Automobile Technology
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Iat Automobile Technology |
Guangdong Jingyi and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Iat Automobile
The main advantage of trading using opposite Guangdong Jingyi and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi 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.| Guangdong Jingyi vs. Xiamen Bank Co | Guangdong Jingyi vs. Time Publishing and | Guangdong Jingyi vs. Zhejiang Publishing Media | Guangdong Jingyi vs. COL Digital Publishing |
| Iat Automobile vs. Puya Semiconductor Shanghai | Iat Automobile vs. Aluminum Corp of | Iat Automobile vs. StarPower Semiconductor | Iat Automobile vs. Shanghai Yanpu Metal |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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