Correlation Between Iat Automobile and Luzhou Lao
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By analyzing existing cross correlation between Iat Automobile Technology and Luzhou Lao Jiao, you can compare the effects of market volatilities on Iat Automobile and Luzhou Lao 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 Luzhou Lao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Luzhou Lao.
Diversification Opportunities for Iat Automobile and Luzhou Lao
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iat and Luzhou is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Luzhou Lao Jiao in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luzhou Lao Jiao 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 Luzhou Lao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luzhou Lao Jiao has no effect on the direction of Iat Automobile i.e., Iat Automobile and Luzhou Lao go up and down completely randomly.
Pair Corralation between Iat Automobile and Luzhou Lao
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.57 times more return on investment than Luzhou Lao. However, Iat Automobile is 1.57 times more volatile than Luzhou Lao Jiao. It trades about 0.02 of its potential returns per unit of risk. Luzhou Lao Jiao is currently generating about -0.02 per unit of risk. If you would invest 1,200 in Iat Automobile Technology on September 3, 2024 and sell it today you would earn a total of 30.00 from holding Iat Automobile Technology or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Luzhou Lao Jiao
Performance |
| Timeline |
| Iat Automobile Technology |
| Luzhou Lao Jiao |
Iat Automobile and Luzhou Lao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Luzhou Lao
The main advantage of trading using opposite Iat Automobile and Luzhou Lao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Luzhou Lao 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 Luzhou Lao will offset losses from the drop in Luzhou Lao's long position.| Iat Automobile vs. PetroChina Co Ltd | Iat Automobile vs. China Mobile Limited | Iat Automobile vs. Industrial and Commercial | Iat Automobile vs. China Life Insurance |
| Luzhou Lao vs. Eastern Communications Co | Luzhou Lao vs. Shenzhen Kexin Communication | Luzhou Lao vs. Iat Automobile Technology | Luzhou Lao vs. Sinofibers Technology Co |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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