Correlation Between Iat Automobile and Haima Automobile
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By analyzing existing cross correlation between Iat Automobile Technology and Haima Automobile Group, you can compare the effects of market volatilities on Iat Automobile and Haima 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 Iat Automobile with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Haima Automobile.
Diversification Opportunities for Iat Automobile and Haima Automobile
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iat and Haima is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile 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 Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Iat Automobile i.e., Iat Automobile and Haima Automobile go up and down completely randomly.
Pair Corralation between Iat Automobile and Haima Automobile
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.07 times more return on investment than Haima Automobile. However, Iat Automobile is 1.07 times more volatile than Haima Automobile Group. It trades about 0.02 of its potential returns per unit of risk. Haima Automobile Group is currently generating about 0.01 per unit of risk. If you would invest 1,282 in Iat Automobile Technology on August 25, 2024 and sell it today you would lose (31.00) from holding Iat Automobile Technology or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Haima Automobile Group
Performance |
| Timeline |
| Iat Automobile Technology |
| Haima Automobile |
Iat Automobile and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Haima Automobile
The main advantage of trading using opposite Iat Automobile and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Haima 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Iat Automobile vs. Anhui Jianghuai Automobile | Iat Automobile vs. Tongyu Communication | Iat Automobile vs. CITIC Metal Co | Iat Automobile vs. Jiangxi Selon Industrial |
| Haima Automobile vs. Lutian Machinery Co | Haima Automobile vs. China Longyuan Power | Haima Automobile vs. Changshu Tongrun Auto | Haima Automobile vs. PetroChina Co Ltd |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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