Correlation Between Iat Automobile and Hunan Nanling
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By analyzing existing cross correlation between Iat Automobile Technology and Hunan Nanling Industrial, you can compare the effects of market volatilities on Iat Automobile and Hunan Nanling 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 Hunan Nanling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Hunan Nanling.
Diversification Opportunities for Iat Automobile and Hunan Nanling
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and Hunan is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Hunan Nanling Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Nanling Industrial 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 Hunan Nanling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Nanling Industrial has no effect on the direction of Iat Automobile i.e., Iat Automobile and Hunan Nanling go up and down completely randomly.
Pair Corralation between Iat Automobile and Hunan Nanling
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.5 times more return on investment than Hunan Nanling. However, Iat Automobile is 1.5 times more volatile than Hunan Nanling Industrial. It trades about 0.02 of its potential returns per unit of risk. Hunan Nanling Industrial is currently generating about 0.01 per unit of risk. If you would invest 1,276 in Iat Automobile Technology on August 27, 2024 and sell it today you would lose (25.00) from holding Iat Automobile Technology or give up 1.96% 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. Hunan Nanling Industrial
Performance |
| Timeline |
| Iat Automobile Technology |
| Hunan Nanling Industrial |
Iat Automobile and Hunan Nanling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Hunan Nanling
The main advantage of trading using opposite Iat Automobile and Hunan Nanling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Hunan Nanling 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 Hunan Nanling will offset losses from the drop in Hunan Nanling's long position.| Iat Automobile vs. Loongson Technology Corp | Iat Automobile vs. Chongqing Road Bridge | Iat Automobile vs. Shenzhen Fortune Trend | Iat Automobile vs. Wuhan Xianglong Power |
| Hunan Nanling vs. Bomin Electronics Co | Hunan Nanling vs. Aurora Optoelectronics Co | Hunan Nanling vs. TongFu Microelectronics Co | Hunan Nanling vs. Wuhan Yangtze 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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