Correlation Between Iat Automobile and Changzhou Almaden
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By analyzing existing cross correlation between Iat Automobile Technology and Changzhou Almaden Co, you can compare the effects of market volatilities on Iat Automobile and Changzhou Almaden 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 Changzhou Almaden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Changzhou Almaden.
Diversification Opportunities for Iat Automobile and Changzhou Almaden
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iat and Changzhou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Changzhou Almaden Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changzhou Almaden 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 Changzhou Almaden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changzhou Almaden has no effect on the direction of Iat Automobile i.e., Iat Automobile and Changzhou Almaden go up and down completely randomly.
Pair Corralation between Iat Automobile and Changzhou Almaden
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.61 times more return on investment than Changzhou Almaden. However, Iat Automobile is 1.61 times more volatile than Changzhou Almaden Co. It trades about 0.14 of its potential returns per unit of risk. Changzhou Almaden Co is currently generating about -0.05 per unit of risk. If you would invest 1,207 in Iat Automobile Technology on September 12, 2024 and sell it today you would earn a total of 128.00 from holding Iat Automobile Technology or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Iat Automobile Technology vs. Changzhou Almaden Co
Performance |
| Timeline |
| Iat Automobile Technology |
| Changzhou Almaden |
Iat Automobile and Changzhou Almaden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Changzhou Almaden
The main advantage of trading using opposite Iat Automobile and Changzhou Almaden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Changzhou Almaden 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 Changzhou Almaden will offset losses from the drop in Changzhou Almaden's long position.| Iat Automobile vs. Lutian Machinery Co | Iat Automobile vs. PetroChina Co Ltd | Iat Automobile vs. Bank of China | Iat Automobile vs. Gansu Jiu Steel |
| Changzhou Almaden vs. New Hope Dairy | Changzhou Almaden vs. Iat Automobile Technology | Changzhou Almaden vs. Jiajia Food Group | Changzhou Almaden vs. Beijing Sanyuan Foods |
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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