Correlation Between Iat Automobile and Huadong Medicine
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By analyzing existing cross correlation between Iat Automobile Technology and Huadong Medicine Co, you can compare the effects of market volatilities on Iat Automobile and Huadong Medicine 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 Huadong Medicine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Huadong Medicine.
Diversification Opportunities for Iat Automobile and Huadong Medicine
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and Huadong is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Huadong Medicine Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huadong Medicine 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 Huadong Medicine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huadong Medicine has no effect on the direction of Iat Automobile i.e., Iat Automobile and Huadong Medicine go up and down completely randomly.
Pair Corralation between Iat Automobile and Huadong Medicine
Assuming the 90 days trading horizon Iat Automobile Technology is expected to under-perform the Huadong Medicine. In addition to that, Iat Automobile is 1.91 times more volatile than Huadong Medicine Co. It trades about -0.19 of its total potential returns per unit of risk. Huadong Medicine Co is currently generating about -0.33 per unit of volatility. If you would invest 3,676 in Huadong Medicine Co on October 14, 2024 and sell it today you would lose (413.00) from holding Huadong Medicine Co or give up 11.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Huadong Medicine Co
Performance |
| Timeline |
| Iat Automobile Technology |
| Huadong Medicine |
Iat Automobile and Huadong Medicine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Huadong Medicine
The main advantage of trading using opposite Iat Automobile and Huadong Medicine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Huadong Medicine 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 Huadong Medicine will offset losses from the drop in Huadong Medicine's 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 |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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