Correlation Between Iat Automobile and Guangdong Jingyi
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By analyzing existing cross correlation between Iat Automobile Technology and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Iat Automobile and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Guangdong Jingyi.
Diversification Opportunities for Iat Automobile and Guangdong Jingyi
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iat and Guangdong is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Iat Automobile i.e., Iat Automobile and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Iat Automobile and Guangdong Jingyi
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.03 times more return on investment than Guangdong Jingyi. However, Iat Automobile is 1.03 times more volatile than Guangdong Jingyi Metal. It trades about -0.19 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about -0.34 per unit of risk. If you would invest 1,261 in Iat Automobile Technology on October 14, 2024 and sell it today you would lose (161.00) from holding Iat Automobile Technology or give up 12.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Iat Automobile Technology |
| Guangdong Jingyi Metal |
Iat Automobile and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Guangdong Jingyi
The main advantage of trading using opposite Iat Automobile and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Iat Automobile vs. Zhongrun Resources Investment | Iat Automobile vs. Allgens Medical Technology | Iat Automobile vs. Shanghai Material Trading | Iat Automobile vs. Harbin Hatou Investment |
| Guangdong Jingyi vs. Anhui Gujing Distillery | Guangdong Jingyi vs. Beijing HuaYuanYiTong Thermal | Guangdong Jingyi vs. Guocheng Mining Co | Guangdong Jingyi vs. Hainan Mining Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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