Correlation Between Iat Automobile and Guangzhou Seagull
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By analyzing existing cross correlation between Iat Automobile Technology and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Iat Automobile and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Guangzhou Seagull.
Diversification Opportunities for Iat Automobile and Guangzhou Seagull
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Iat and Guangzhou is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Iat Automobile i.e., Iat Automobile and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Iat Automobile and Guangzhou Seagull
Assuming the 90 days trading horizon Iat Automobile Technology is expected to under-perform the Guangzhou Seagull. But the stock apears to be less risky and, when comparing its historical volatility, Iat Automobile Technology is 1.45 times less risky than Guangzhou Seagull. The stock trades about -0.23 of its potential returns per unit of risk. The Guangzhou Seagull Kitchen is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 292.00 in Guangzhou Seagull Kitchen on January 22, 2025 and sell it today you would earn a total of 45.00 from holding Guangzhou Seagull Kitchen or generate 15.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Iat Automobile Technology |
| Guangzhou Seagull Kitchen |
Iat Automobile and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Guangzhou Seagull
The main advantage of trading using opposite Iat Automobile and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Iat Automobile vs. Hunan Tyen Machinery | Iat Automobile vs. Xinjiang Communications Construction | Iat Automobile vs. Thunder Software Technology | Iat Automobile vs. Masterwork Machinery |
| Guangzhou Seagull vs. Shanghai Ziyan Foods | Guangzhou Seagull vs. ZJBC Information Technology | Guangzhou Seagull vs. Hangzhou Gisway Information | Guangzhou Seagull vs. Guangdong TianYiMa Information |
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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