Correlation Between Iat Automobile and Luolai Home
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By analyzing existing cross correlation between Iat Automobile Technology and Luolai Home Textile, you can compare the effects of market volatilities on Iat Automobile and Luolai Home 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 Luolai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Luolai Home.
Diversification Opportunities for Iat Automobile and Luolai Home
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Iat and Luolai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Luolai Home Textile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luolai Home Textile 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 Luolai Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luolai Home Textile has no effect on the direction of Iat Automobile i.e., Iat Automobile and Luolai Home go up and down completely randomly.
Pair Corralation between Iat Automobile and Luolai Home
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 2.15 times more return on investment than Luolai Home. However, Iat Automobile is 2.15 times more volatile than Luolai Home Textile. It trades about 0.02 of its potential returns per unit of risk. Luolai Home Textile is currently generating about -0.02 per unit of risk. If you would invest 1,282 in Iat Automobile Technology on August 25, 2024 and sell it today you would lose (31.00) from holding Iat Automobile Technology or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Luolai Home Textile
Performance |
| Timeline |
| Iat Automobile Technology |
| Luolai Home Textile |
Iat Automobile and Luolai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Luolai Home
The main advantage of trading using opposite Iat Automobile and Luolai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Luolai Home 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 Luolai Home will offset losses from the drop in Luolai Home's long position.| Iat Automobile vs. Anhui Jianghuai Automobile | Iat Automobile vs. Tongyu Communication | Iat Automobile vs. CITIC Metal Co | Iat Automobile vs. Jiangxi Selon Industrial |
| Luolai Home vs. Cangzhou Mingzhu Plastic | Luolai Home vs. Xinke Material | Luolai Home vs. Ningxia Younglight Chemicals | Luolai Home vs. GRIPM Advanced Materials |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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