Correlation Between Iat Automobile and XinJiang GuoTong
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By analyzing existing cross correlation between Iat Automobile Technology and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Iat Automobile and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and XinJiang GuoTong.
Diversification Opportunities for Iat Automobile and XinJiang GuoTong
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iat and XinJiang is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Iat Automobile i.e., Iat Automobile and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Iat Automobile and XinJiang GuoTong
Assuming the 90 days trading horizon Iat Automobile is expected to generate 1.04 times less return on investment than XinJiang GuoTong. In addition to that, Iat Automobile is 1.28 times more volatile than XinJiang GuoTong Pipeline. It trades about 0.14 of its total potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.19 per unit of volatility. If you would invest 638.00 in XinJiang GuoTong Pipeline on September 3, 2024 and sell it today you would earn a total of 268.00 from holding XinJiang GuoTong Pipeline or generate 42.01% 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. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Iat Automobile Technology |
| XinJiang GuoTong Pipeline |
Iat Automobile and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and XinJiang GuoTong
The main advantage of trading using opposite Iat Automobile and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong'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 |
| XinJiang GuoTong vs. Iat Automobile Technology | XinJiang GuoTong vs. Sinomach Automobile Co | XinJiang GuoTong vs. Guangzhou Automobile Group | XinJiang GuoTong vs. Ningxia Younglight Chemicals |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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