Correlation Between Iat Automobile and Ningbo Kangqiang
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By analyzing existing cross correlation between Iat Automobile Technology and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Iat Automobile and Ningbo Kangqiang 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 Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Ningbo Kangqiang.
Diversification Opportunities for Iat Automobile and Ningbo Kangqiang
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Iat and Ningbo is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Ningbo Kangqiang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Kangqiang Ele 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 Ningbo Kangqiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Kangqiang Ele has no effect on the direction of Iat Automobile i.e., Iat Automobile and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Iat Automobile and Ningbo Kangqiang
Assuming the 90 days trading horizon Iat Automobile Technology is expected to under-perform the Ningbo Kangqiang. But the stock apears to be less risky and, when comparing its historical volatility, Iat Automobile Technology is 1.48 times less risky than Ningbo Kangqiang. The stock trades about -0.16 of its potential returns per unit of risk. The Ningbo Kangqiang Electronics is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,442 in Ningbo Kangqiang Electronics on October 16, 2024 and sell it today you would earn a total of 298.00 from holding Ningbo Kangqiang Electronics or generate 20.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Iat Automobile Technology |
| Ningbo Kangqiang Ele |
Iat Automobile and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Ningbo Kangqiang
The main advantage of trading using opposite Iat Automobile and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Ningbo Kangqiang 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 Ningbo Kangqiang will offset losses from the drop in Ningbo Kangqiang's long position.| Iat Automobile vs. Digiwin Software Co | Iat Automobile vs. Guangdong Xiongsu Technology | Iat Automobile vs. Ningbo Kangqiang Electronics | Iat Automobile vs. Hubei Forbon Technology |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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