Correlation Between Iat Automobile and Hunan Investment
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By analyzing existing cross correlation between Iat Automobile Technology and Hunan Investment Group, you can compare the effects of market volatilities on Iat Automobile and Hunan Investment 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 Iat Automobile with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Hunan Investment.
Diversification Opportunities for Iat Automobile and Hunan Investment
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and Hunan is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Iat Automobile 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 Iat Automobile Technology are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Iat Automobile i.e., Iat Automobile and Hunan Investment go up and down completely randomly.
Pair Corralation between Iat Automobile and Hunan Investment
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.58 times more return on investment than Hunan Investment. However, Iat Automobile is 1.58 times more volatile than Hunan Investment Group. It trades about 0.01 of its potential returns per unit of risk. Hunan Investment Group is currently generating about 0.01 per unit of risk. If you would invest 1,227 in Iat Automobile Technology on October 25, 2024 and sell it today you would lose (125.00) from holding Iat Automobile Technology or give up 10.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Hunan Investment Group
Performance |
| Timeline |
| Iat Automobile Technology |
| Hunan Investment |
Iat Automobile and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Hunan Investment
The main advantage of trading using opposite Iat Automobile and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Iat Automobile vs. Double Medical Technology | Iat Automobile vs. Fiberhome Telecommunication Technologies | Iat Automobile vs. Eastern Communications Co | Iat Automobile vs. Wintao Communications Co |
| Hunan Investment vs. Agricultural Bank of | Hunan Investment vs. Industrial and Commercial | Hunan Investment vs. Bank of China | Hunan Investment vs. China Construction Bank |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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