Correlation Between Iat Automobile and Bus Online
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By analyzing existing cross correlation between Iat Automobile Technology and Bus Online Co, you can compare the effects of market volatilities on Iat Automobile and Bus Online 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 Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Bus Online.
Diversification Opportunities for Iat Automobile and Bus Online
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iat and Bus is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online 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 Bus Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bus Online has no effect on the direction of Iat Automobile i.e., Iat Automobile and Bus Online go up and down completely randomly.
Pair Corralation between Iat Automobile and Bus Online
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.56 times more return on investment than Bus Online. However, Iat Automobile is 1.56 times more volatile than Bus Online Co. It trades about 0.14 of its potential returns per unit of risk. Bus Online Co is currently generating about 0.15 per unit of risk. If you would invest 897.00 in Iat Automobile Technology on September 3, 2024 and sell it today you would earn a total of 333.00 from holding Iat Automobile Technology or generate 37.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Bus Online Co
Performance |
| Timeline |
| Iat Automobile Technology |
| Bus Online |
Iat Automobile and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Bus Online
The main advantage of trading using opposite Iat Automobile and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Bus Online 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 Bus Online will offset losses from the drop in Bus Online's long position.| Iat Automobile vs. PetroChina Co Ltd | Iat Automobile vs. China Mobile Limited | Iat Automobile vs. Industrial and Commercial | Iat Automobile vs. China Life Insurance |
| Bus Online vs. Anhui Transport Consulting | Bus Online vs. Sino Platinum Metals Co | Bus Online vs. Guangdong Jingyi Metal | Bus Online vs. China Aluminum International |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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