Correlation Between Masterwork Machinery and Iat Automobile
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By analyzing existing cross correlation between Masterwork Machinery and Iat Automobile Technology, you can compare the effects of market volatilities on Masterwork Machinery 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 Masterwork Machinery with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Masterwork Machinery and Iat Automobile.
Diversification Opportunities for Masterwork Machinery and Iat Automobile
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Masterwork and Iat is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Masterwork Machinery 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 Masterwork Machinery 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 Masterwork Machinery 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 Masterwork Machinery i.e., Masterwork Machinery and Iat Automobile go up and down completely randomly.
Pair Corralation between Masterwork Machinery and Iat Automobile
Assuming the 90 days trading horizon Masterwork Machinery is expected to generate 1.5 times more return on investment than Iat Automobile. However, Masterwork Machinery is 1.5 times more volatile than Iat Automobile Technology. It trades about 0.09 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.06 per unit of risk. If you would invest 563.00 in Masterwork Machinery on August 29, 2024 and sell it today you would earn a total of 46.00 from holding Masterwork Machinery or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Masterwork Machinery vs. Iat Automobile Technology
Performance |
| Timeline |
| Masterwork Machinery |
| Iat Automobile Technology |
Masterwork Machinery and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Masterwork Machinery and Iat Automobile
The main advantage of trading using opposite Masterwork Machinery and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Masterwork Machinery 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.| Masterwork Machinery vs. Biwin Storage Technology | Masterwork Machinery vs. PetroChina Co Ltd | Masterwork Machinery vs. Industrial and Commercial | Masterwork Machinery vs. China Construction Bank |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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