Correlation Between Iat Automobile and Tongling Nonferrous
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By analyzing existing cross correlation between Iat Automobile Technology and Tongling Nonferrous Metals, you can compare the effects of market volatilities on Iat Automobile and Tongling Nonferrous 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 Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Tongling Nonferrous.
Diversification Opportunities for Iat Automobile and Tongling Nonferrous
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Iat and Tongling is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous 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 Tongling Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongling Nonferrous has no effect on the direction of Iat Automobile i.e., Iat Automobile and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between Iat Automobile and Tongling Nonferrous
Assuming the 90 days trading horizon Iat Automobile Technology is expected to under-perform the Tongling Nonferrous. In addition to that, Iat Automobile is 3.05 times more volatile than Tongling Nonferrous Metals. It trades about -0.19 of its total potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about -0.31 per unit of volatility. If you would invest 345.00 in Tongling Nonferrous Metals on October 14, 2024 and sell it today you would lose (23.00) from holding Tongling Nonferrous Metals or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| Iat Automobile Technology |
| Tongling Nonferrous |
Iat Automobile and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Tongling Nonferrous
The main advantage of trading using opposite Iat Automobile and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Tongling Nonferrous 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 Tongling Nonferrous will offset losses from the drop in Tongling Nonferrous' long position.| Iat Automobile vs. Zhongrun Resources Investment | Iat Automobile vs. Allgens Medical Technology | Iat Automobile vs. Shanghai Material Trading | Iat Automobile vs. Harbin Hatou Investment |
| Tongling Nonferrous vs. PKU HealthCare Corp | Tongling Nonferrous vs. Sanbo Hospital Management | Tongling Nonferrous vs. Healthcare Co | Tongling Nonferrous vs. Mingchen Health 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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