Correlation Between Iat Automobile and Xinxiang Chemical
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By analyzing existing cross correlation between Iat Automobile Technology and Xinxiang Chemical Fiber, you can compare the effects of market volatilities on Iat Automobile and Xinxiang Chemical 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 Xinxiang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Xinxiang Chemical.
Diversification Opportunities for Iat Automobile and Xinxiang Chemical
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Iat and Xinxiang is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Xinxiang Chemical Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinxiang Chemical Fiber 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 Xinxiang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinxiang Chemical Fiber has no effect on the direction of Iat Automobile i.e., Iat Automobile and Xinxiang Chemical go up and down completely randomly.
Pair Corralation between Iat Automobile and Xinxiang Chemical
Assuming the 90 days trading horizon Iat Automobile is expected to generate 1.27 times less return on investment than Xinxiang Chemical. In addition to that, Iat Automobile is 1.29 times more volatile than Xinxiang Chemical Fiber. It trades about 0.01 of its total potential returns per unit of risk. Xinxiang Chemical Fiber is currently generating about 0.02 per unit of volatility. If you would invest 361.00 in Xinxiang Chemical Fiber on October 30, 2024 and sell it today you would earn a total of 49.00 from holding Xinxiang Chemical Fiber or generate 13.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Xinxiang Chemical Fiber
Performance |
| Timeline |
| Iat Automobile Technology |
| Xinxiang Chemical Fiber |
Iat Automobile and Xinxiang Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Xinxiang Chemical
The main advantage of trading using opposite Iat Automobile and Xinxiang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Xinxiang Chemical 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 Xinxiang Chemical will offset losses from the drop in Xinxiang Chemical's long position.| Iat Automobile vs. China Asset Management | Iat Automobile vs. Zhongzhu Medical Holdings | Iat Automobile vs. Allgens Medical Technology | Iat Automobile vs. Xiangyu Medical Co |
| Xinxiang Chemical vs. Jinhui Mining Co | Xinxiang Chemical vs. Ningbo Construction Co | Xinxiang Chemical vs. Uroica Mining Safety | Xinxiang Chemical vs. Gifore Agricultural Machinery |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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