Correlation Between Guilin Seamild and Iat Automobile
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By analyzing existing cross correlation between Guilin Seamild Foods and Iat Automobile Technology, you can compare the effects of market volatilities on Guilin Seamild 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 Guilin Seamild with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Iat Automobile.
Diversification Opportunities for Guilin Seamild and Iat Automobile
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guilin and Iat is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods 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 Guilin Seamild 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 Guilin Seamild Foods 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 Guilin Seamild i.e., Guilin Seamild and Iat Automobile go up and down completely randomly.
Pair Corralation between Guilin Seamild and Iat Automobile
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 0.67 times more return on investment than Iat Automobile. However, Guilin Seamild Foods is 1.5 times less risky than Iat Automobile. It trades about 0.05 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.01 per unit of risk. If you would invest 1,237 in Guilin Seamild Foods on September 3, 2024 and sell it today you would earn a total of 219.00 from holding Guilin Seamild Foods or generate 17.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Iat Automobile Technology
Performance |
| Timeline |
| Guilin Seamild Foods |
| Iat Automobile Technology |
Guilin Seamild and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Iat Automobile
The main advantage of trading using opposite Guilin Seamild and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild 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.| Guilin Seamild vs. Beijing Wantai Biological | Guilin Seamild vs. Aluminum Corp of | Guilin Seamild vs. COL Digital Publishing | Guilin Seamild vs. Shaanxi Meineng Clean |
| Iat Automobile vs. PetroChina Co Ltd | Iat Automobile vs. China Mobile Limited | Iat Automobile vs. Industrial and Commercial | Iat Automobile vs. China Life Insurance |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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