Correlation Between Iat Automobile and Guocheng Mining
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By analyzing existing cross correlation between Iat Automobile Technology and Guocheng Mining Co, you can compare the effects of market volatilities on Iat Automobile and Guocheng Mining 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 Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Guocheng Mining.
Diversification Opportunities for Iat Automobile and Guocheng Mining
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Iat and Guocheng is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining 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 Guocheng Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guocheng Mining has no effect on the direction of Iat Automobile i.e., Iat Automobile and Guocheng Mining go up and down completely randomly.
Pair Corralation between Iat Automobile and Guocheng Mining
Assuming the 90 days trading horizon Iat Automobile is expected to generate 1.14 times less return on investment than Guocheng Mining. In addition to that, Iat Automobile is 1.19 times more volatile than Guocheng Mining Co. It trades about 0.19 of its total potential returns per unit of risk. Guocheng Mining Co is currently generating about 0.25 per unit of volatility. If you would invest 908.00 in Guocheng Mining Co on September 12, 2024 and sell it today you would earn a total of 622.00 from holding Guocheng Mining Co or generate 68.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.28% |
| Values | Daily Returns |
Iat Automobile Technology vs. Guocheng Mining Co
Performance |
| Timeline |
| Iat Automobile Technology |
| Guocheng Mining |
Iat Automobile and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Guocheng Mining
The main advantage of trading using opposite Iat Automobile and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Guocheng Mining 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 Guocheng Mining will offset losses from the drop in Guocheng Mining's long position.| Iat Automobile vs. Everdisplay Optronics Shanghai | Iat Automobile vs. Healthcare Co | Iat Automobile vs. Lotus Health Group | Iat Automobile vs. Jinling Hotel Corp |
| Guocheng Mining vs. Cambricon Technologies Corp | Guocheng Mining vs. Loongson Technology Corp | Guocheng Mining vs. Shenzhen Fortune Trend | Guocheng Mining vs. Chongqing Road Bridge |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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