Correlation Between Northking Information and Iat Automobile
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By analyzing existing cross correlation between Northking Information Technology and Iat Automobile Technology, you can compare the effects of market volatilities on Northking Information 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 Northking Information with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and Iat Automobile.
Diversification Opportunities for Northking Information and Iat Automobile
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Northking and Iat is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo 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 Northking Information 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 Northking Information Technology 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 Northking Information i.e., Northking Information and Iat Automobile go up and down completely randomly.
Pair Corralation between Northking Information and Iat Automobile
Assuming the 90 days trading horizon Northking Information Technology is expected to under-perform the Iat Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Northking Information Technology is 1.41 times less risky than Iat Automobile. The stock trades about -0.07 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 1,207 in Iat Automobile Technology on September 12, 2024 and sell it today you would earn a total of 128.00 from holding Iat Automobile Technology or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northking Information Technolo vs. Iat Automobile Technology
Performance |
| Timeline |
| Northking Information |
| Iat Automobile Technology |
Northking Information and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northking Information and Iat Automobile
The main advantage of trading using opposite Northking Information and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information 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.| Northking Information vs. Gansu Jiu Steel | Northking Information vs. Shandong Mining Machinery | Northking Information vs. Aba Chemicals Corp | Northking Information vs. BlueFocus Communication Group |
| Iat Automobile vs. Lutian Machinery Co | Iat Automobile vs. PetroChina Co Ltd | Iat Automobile vs. Bank of China | Iat Automobile vs. Gansu Jiu Steel |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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