Correlation Between Iat Automobile and Zhejiang Transfar
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By analyzing existing cross correlation between Iat Automobile Technology and Zhejiang Transfar Co, you can compare the effects of market volatilities on Iat Automobile and Zhejiang Transfar 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 Zhejiang Transfar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Zhejiang Transfar.
Diversification Opportunities for Iat Automobile and Zhejiang Transfar
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iat and Zhejiang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Zhejiang Transfar Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Transfar 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 Zhejiang Transfar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Transfar has no effect on the direction of Iat Automobile i.e., Iat Automobile and Zhejiang Transfar go up and down completely randomly.
Pair Corralation between Iat Automobile and Zhejiang Transfar
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.86 times more return on investment than Zhejiang Transfar. However, Iat Automobile is 1.86 times more volatile than Zhejiang Transfar Co. It trades about 0.02 of its potential returns per unit of risk. Zhejiang Transfar Co is currently generating about 0.0 per unit of risk. If you would invest 1,200 in Iat Automobile Technology on September 4, 2024 and sell it today you would earn a total of 71.00 from holding Iat Automobile Technology or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Iat Automobile Technology vs. Zhejiang Transfar Co
Performance |
| Timeline |
| Iat Automobile Technology |
| Zhejiang Transfar |
Iat Automobile and Zhejiang Transfar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Zhejiang Transfar
The main advantage of trading using opposite Iat Automobile and Zhejiang Transfar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Zhejiang Transfar 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 Zhejiang Transfar will offset losses from the drop in Zhejiang Transfar's long position.| Iat Automobile vs. Cultural Investment Holdings | Iat Automobile vs. Gome Telecom Equipment | Iat Automobile vs. Bus Online Co | Iat Automobile vs. Holitech Technology Co |
| Zhejiang Transfar vs. Iat Automobile Technology | Zhejiang Transfar vs. Chahua Modern Housewares | Zhejiang Transfar vs. Haima Automobile Group | Zhejiang Transfar vs. Shenzhen Kexin Communication |
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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