Correlation Between Iat Automobile and Hongrun Construction
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By analyzing existing cross correlation between Iat Automobile Technology and Hongrun Construction Group, you can compare the effects of market volatilities on Iat Automobile and Hongrun Construction 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 Hongrun Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Hongrun Construction.
Diversification Opportunities for Iat Automobile and Hongrun Construction
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Iat and Hongrun is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Hongrun Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hongrun Construction 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 Hongrun Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hongrun Construction has no effect on the direction of Iat Automobile i.e., Iat Automobile and Hongrun Construction go up and down completely randomly.
Pair Corralation between Iat Automobile and Hongrun Construction
Assuming the 90 days trading horizon Iat Automobile is expected to generate 1.6 times less return on investment than Hongrun Construction. In addition to that, Iat Automobile is 1.28 times more volatile than Hongrun Construction Group. It trades about 0.06 of its total potential returns per unit of risk. Hongrun Construction Group is currently generating about 0.12 per unit of volatility. If you would invest 406.00 in Hongrun Construction Group on August 29, 2024 and sell it today you would earn a total of 30.00 from holding Hongrun Construction Group or generate 7.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Hongrun Construction Group
Performance |
| Timeline |
| Iat Automobile Technology |
| Hongrun Construction |
Iat Automobile and Hongrun Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Hongrun Construction
The main advantage of trading using opposite Iat Automobile and Hongrun Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Hongrun Construction 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 Hongrun Construction will offset losses from the drop in Hongrun Construction's long position.| Iat Automobile vs. Xian International Medical | Iat Automobile vs. Sino Medical Sciences | Iat Automobile vs. Cofoe Medical Technology | Iat Automobile vs. Allmed Medical Products |
| Hongrun Construction vs. Ming Yang Smart | Hongrun Construction vs. 159681 | Hongrun Construction vs. 159005 | Hongrun Construction vs. Loctek Ergonomic Technology |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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