Correlation Between Dongguan Aohai and Iat Automobile
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By analyzing existing cross correlation between Dongguan Aohai Technology and Iat Automobile Technology, you can compare the effects of market volatilities on Dongguan Aohai 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 Dongguan Aohai with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Aohai and Iat Automobile.
Diversification Opportunities for Dongguan Aohai and Iat Automobile
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongguan and Iat is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Aohai Technology 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 Dongguan Aohai 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 Dongguan Aohai 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 Dongguan Aohai i.e., Dongguan Aohai and Iat Automobile go up and down completely randomly.
Pair Corralation between Dongguan Aohai and Iat Automobile
Assuming the 90 days trading horizon Dongguan Aohai Technology is expected to generate 1.24 times more return on investment than Iat Automobile. However, Dongguan Aohai is 1.24 times more volatile than Iat Automobile Technology. It trades about 0.25 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.14 per unit of risk. If you would invest 3,178 in Dongguan Aohai Technology on September 12, 2024 and sell it today you would earn a total of 899.00 from holding Dongguan Aohai Technology or generate 28.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dongguan Aohai Technology vs. Iat Automobile Technology
Performance |
| Timeline |
| Dongguan Aohai Technology |
| Iat Automobile Technology |
Dongguan Aohai and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Aohai and Iat Automobile
The main advantage of trading using opposite Dongguan Aohai and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Aohai 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.| Dongguan Aohai vs. Agricultural Bank of | Dongguan Aohai vs. Industrial and Commercial | Dongguan Aohai vs. Bank of China | Dongguan Aohai vs. PetroChina Co Ltd |
| 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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