Correlation Between Iat Automobile and China Longyuan
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By analyzing existing cross correlation between Iat Automobile Technology and China Longyuan Power, you can compare the effects of market volatilities on Iat Automobile and China Longyuan 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 China Longyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and China Longyuan.
Diversification Opportunities for Iat Automobile and China Longyuan
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and China is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and China Longyuan Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Longyuan Power 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 China Longyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Longyuan Power has no effect on the direction of Iat Automobile i.e., Iat Automobile and China Longyuan go up and down completely randomly.
Pair Corralation between Iat Automobile and China Longyuan
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 3.07 times more return on investment than China Longyuan. However, Iat Automobile is 3.07 times more volatile than China Longyuan Power. It trades about 0.2 of its potential returns per unit of risk. China Longyuan Power is currently generating about 0.04 per unit of risk. If you would invest 1,055 in Iat Automobile Technology on November 6, 2024 and sell it today you would earn a total of 118.00 from holding Iat Automobile Technology or generate 11.18% 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. China Longyuan Power
Performance |
| Timeline |
| Iat Automobile Technology |
| China Longyuan Power |
Iat Automobile and China Longyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and China Longyuan
The main advantage of trading using opposite Iat Automobile and China Longyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, China Longyuan 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 China Longyuan will offset losses from the drop in China Longyuan's long position.| Iat Automobile vs. Gansu Huangtai Wine marketing | Iat Automobile vs. Zhangjiagang Freetrade Science | Iat Automobile vs. Bloomage Biotechnology Corp | Iat Automobile vs. Shanghai Rightongene Biotechnology |
| China Longyuan vs. Hua Hong Semiconductor | China Longyuan vs. Shanghai V Test Semiconductor | China Longyuan vs. Ping An Insurance | China Longyuan vs. Thinkon Semiconductor Jinzhou |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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