Correlation Between Iat Automobile and Guangzhou Haige
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By analyzing existing cross correlation between Iat Automobile Technology and Guangzhou Haige Communications, you can compare the effects of market volatilities on Iat Automobile and Guangzhou Haige 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 Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Guangzhou Haige.
Diversification Opportunities for Iat Automobile and Guangzhou Haige
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Iat and Guangzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm 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 Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Iat Automobile i.e., Iat Automobile and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Iat Automobile and Guangzhou Haige
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.25 times more return on investment than Guangzhou Haige. However, Iat Automobile is 1.25 times more volatile than Guangzhou Haige Communications. It trades about 0.21 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.12 per unit of risk. If you would invest 1,042 in Iat Automobile Technology on August 25, 2024 and sell it today you would earn a total of 209.00 from holding Iat Automobile Technology or generate 20.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Iat Automobile Technology |
| Guangzhou Haige Comm |
Iat Automobile and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Guangzhou Haige
The main advantage of trading using opposite Iat Automobile and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Guangzhou Haige 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 Guangzhou Haige will offset losses from the drop in Guangzhou Haige'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 |
| Guangzhou Haige vs. Shanghai Rongtai Health | Guangzhou Haige vs. Shandong Sinoglory Health | Guangzhou Haige vs. Suzhou Mingzhi Technology | Guangzhou Haige vs. Yunnan Jianzhijia Health Chain |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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