Correlation Between Allmed Medical and Iat Automobile
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By analyzing existing cross correlation between Allmed Medical Products and Iat Automobile Technology, you can compare the effects of market volatilities on Allmed Medical 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 Allmed Medical with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allmed Medical and Iat Automobile.
Diversification Opportunities for Allmed Medical and Iat Automobile
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allmed and Iat is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Allmed Medical Products 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 Allmed Medical 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 Allmed Medical Products 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 Allmed Medical i.e., Allmed Medical and Iat Automobile go up and down completely randomly.
Pair Corralation between Allmed Medical and Iat Automobile
Assuming the 90 days trading horizon Allmed Medical Products is expected to under-perform the Iat Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Allmed Medical Products is 1.73 times less risky than Iat Automobile. The stock trades about 0.0 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 1,410 in Iat Automobile Technology on August 31, 2024 and sell it today you would lose (180.00) from holding Iat Automobile Technology or give up 12.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allmed Medical Products vs. Iat Automobile Technology
Performance |
| Timeline |
| Allmed Medical Products |
| Iat Automobile Technology |
Allmed Medical and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allmed Medical and Iat Automobile
The main advantage of trading using opposite Allmed Medical and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allmed Medical 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.| Allmed Medical vs. PetroChina Co Ltd | Allmed Medical vs. China Mobile Limited | Allmed Medical vs. Ping An Insurance | Allmed Medical vs. China Petroleum Chemical |
| Iat Automobile vs. China State Construction | Iat Automobile vs. China Merchants Shekou | Iat Automobile vs. Huafa Industrial Co | Iat Automobile vs. China International Capital |
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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