Correlation Between Sinofibers Technology and Iat Automobile
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By analyzing existing cross correlation between Sinofibers Technology Co and Iat Automobile Technology, you can compare the effects of market volatilities on Sinofibers Technology 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 Sinofibers Technology with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinofibers Technology and Iat Automobile.
Diversification Opportunities for Sinofibers Technology and Iat Automobile
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinofibers and Iat is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Sinofibers Technology Co 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 Sinofibers Technology 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 Sinofibers Technology Co 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 Sinofibers Technology i.e., Sinofibers Technology and Iat Automobile go up and down completely randomly.
Pair Corralation between Sinofibers Technology and Iat Automobile
Assuming the 90 days trading horizon Sinofibers Technology is expected to generate 1.01 times less return on investment than Iat Automobile. In addition to that, Sinofibers Technology is 1.08 times more volatile than Iat Automobile Technology. It trades about 0.13 of its total potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.14 per unit of volatility. If you would invest 897.00 in Iat Automobile Technology on September 3, 2024 and sell it today you would earn a total of 333.00 from holding Iat Automobile Technology or generate 37.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinofibers Technology Co vs. Iat Automobile Technology
Performance |
| Timeline |
| Sinofibers Technology |
| Iat Automobile Technology |
Sinofibers Technology and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinofibers Technology and Iat Automobile
The main advantage of trading using opposite Sinofibers Technology and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinofibers Technology 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.| Sinofibers Technology vs. Zijin Mining Group | Sinofibers Technology vs. Baoshan Iron Steel | Sinofibers Technology vs. Rongsheng Petrochemical Co | Sinofibers Technology vs. Hoshine Silicon Ind |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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