Correlation Between Iat Automobile and CITIC Guoan
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By analyzing existing cross correlation between Iat Automobile Technology and CITIC Guoan Information, you can compare the effects of market volatilities on Iat Automobile and CITIC Guoan 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 CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and CITIC Guoan.
Diversification Opportunities for Iat Automobile and CITIC Guoan
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and CITIC is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and CITIC Guoan Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Guoan Information 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 CITIC Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Guoan Information has no effect on the direction of Iat Automobile i.e., Iat Automobile and CITIC Guoan go up and down completely randomly.
Pair Corralation between Iat Automobile and CITIC Guoan
Assuming the 90 days trading horizon Iat Automobile Technology is expected to under-perform the CITIC Guoan. In addition to that, Iat Automobile is 1.48 times more volatile than CITIC Guoan Information. It trades about -0.01 of its total potential returns per unit of risk. CITIC Guoan Information is currently generating about 0.04 per unit of volatility. If you would invest 229.00 in CITIC Guoan Information on October 16, 2024 and sell it today you would earn a total of 57.00 from holding CITIC Guoan Information or generate 24.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. CITIC Guoan Information
Performance |
| Timeline |
| Iat Automobile Technology |
| CITIC Guoan Information |
Iat Automobile and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and CITIC Guoan
The main advantage of trading using opposite Iat Automobile and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, CITIC Guoan 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 CITIC Guoan will offset losses from the drop in CITIC Guoan's long position.| Iat Automobile vs. Digiwin Software Co | Iat Automobile vs. Guangdong Xiongsu Technology | Iat Automobile vs. Ningbo Kangqiang Electronics | Iat Automobile vs. Hubei Forbon Technology |
| CITIC Guoan vs. 360 Security Technology | CITIC Guoan vs. Iat Automobile Technology | CITIC Guoan vs. Linewell Software Co | CITIC Guoan vs. Shanghai Ziyan Foods |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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