Correlation Between Iat Automobile and Jiangsu Yanghe
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By analyzing existing cross correlation between Iat Automobile Technology and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Iat Automobile and Jiangsu Yanghe 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 Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Jiangsu Yanghe.
Diversification Opportunities for Iat Automobile and Jiangsu Yanghe
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Iat and Jiangsu is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Iat Automobile i.e., Iat Automobile and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Iat Automobile and Jiangsu Yanghe
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 3.34 times more return on investment than Jiangsu Yanghe. However, Iat Automobile is 3.34 times more volatile than Jiangsu Yanghe Brewery. It trades about 0.01 of its potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.13 per unit of risk. If you would invest 1,178 in Iat Automobile Technology on October 30, 2024 and sell it today you would lose (5.00) from holding Iat Automobile Technology or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Iat Automobile Technology |
| Jiangsu Yanghe Brewery |
Iat Automobile and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Jiangsu Yanghe
The main advantage of trading using opposite Iat Automobile and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Iat Automobile vs. China Asset Management | Iat Automobile vs. Zhongzhu Medical Holdings | Iat Automobile vs. Allgens Medical Technology | Iat Automobile vs. Xiangyu Medical Co |
| Jiangsu Yanghe vs. Shanghai Broadband Technology | Jiangsu Yanghe vs. Hunan TV Broadcast | Jiangsu Yanghe vs. Anhui Deli Household | Jiangsu Yanghe vs. Anhui Transport Consulting |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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