Correlation Between Guosheng Financial and Iat Automobile
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By analyzing existing cross correlation between Guosheng Financial Holding and Iat Automobile Technology, you can compare the effects of market volatilities on Guosheng Financial 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 Guosheng Financial with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Iat Automobile.
Diversification Opportunities for Guosheng Financial and Iat Automobile
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guosheng and Iat is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding 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 Guosheng Financial 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 Guosheng Financial Holding 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 Guosheng Financial i.e., Guosheng Financial and Iat Automobile go up and down completely randomly.
Pair Corralation between Guosheng Financial and Iat Automobile
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to under-perform the Iat Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Guosheng Financial Holding is 1.2 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 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,146 in Iat Automobile Technology on August 28, 2024 and sell it today you would earn a total of 118.00 from holding Iat Automobile Technology or generate 10.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Iat Automobile Technology
Performance |
| Timeline |
| Guosheng Financial |
| Iat Automobile Technology |
Guosheng Financial and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Iat Automobile
The main advantage of trading using opposite Guosheng Financial and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial 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.| Guosheng Financial vs. BeiGene | Guosheng Financial vs. Kweichow Moutai Co | Guosheng Financial vs. Beijing Roborock Technology | Guosheng Financial vs. G bits Network Technology |
| Iat Automobile vs. Xian International Medical | Iat Automobile vs. Sino Medical Sciences | Iat Automobile vs. Cofoe Medical Technology | Iat Automobile vs. Allmed Medical Products |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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