Correlation Between Iat Automobile and Zhejiang Kingland
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By analyzing existing cross correlation between Iat Automobile Technology and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Iat Automobile and Zhejiang Kingland 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 Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Zhejiang Kingland.
Diversification Opportunities for Iat Automobile and Zhejiang Kingland
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and Zhejiang is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland 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 Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Iat Automobile i.e., Iat Automobile and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Iat Automobile and Zhejiang Kingland
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 2.45 times more return on investment than Zhejiang Kingland. However, Iat Automobile is 2.45 times more volatile than Zhejiang Kingland Pipeline. It trades about -0.02 of its potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about -0.16 per unit of risk. If you would invest 1,230 in Iat Automobile Technology on October 30, 2024 and sell it today you would lose (57.00) from holding Iat Automobile Technology or give up 4.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| Iat Automobile Technology |
| Zhejiang Kingland |
Iat Automobile and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Zhejiang Kingland
The main advantage of trading using opposite Iat Automobile and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland'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 |
| Zhejiang Kingland vs. SSAW Hotels Resorts | Zhejiang Kingland vs. PKU HealthCare Corp | Zhejiang Kingland vs. Meinian Onehealth Healthcare | Zhejiang Kingland vs. Lootom Telcovideo Network |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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