Correlation Between Iat Automobile and HaiXin Foods
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By analyzing existing cross correlation between Iat Automobile Technology and HaiXin Foods Co, you can compare the effects of market volatilities on Iat Automobile and HaiXin Foods 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 HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and HaiXin Foods.
Diversification Opportunities for Iat Automobile and HaiXin Foods
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Iat and HaiXin is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods 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 HaiXin Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HaiXin Foods has no effect on the direction of Iat Automobile i.e., Iat Automobile and HaiXin Foods go up and down completely randomly.
Pair Corralation between Iat Automobile and HaiXin Foods
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 0.59 times more return on investment than HaiXin Foods. However, Iat Automobile Technology is 1.69 times less risky than HaiXin Foods. It trades about -0.21 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about -0.23 per unit of risk. If you would invest 1,325 in Iat Automobile Technology on October 12, 2024 and sell it today you would lose (198.00) from holding Iat Automobile Technology or give up 14.94% 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. HaiXin Foods Co
Performance |
| Timeline |
| Iat Automobile Technology |
| HaiXin Foods |
Iat Automobile and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and HaiXin Foods
The main advantage of trading using opposite Iat Automobile and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, HaiXin Foods 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 HaiXin Foods will offset losses from the drop in HaiXin Foods' long position.| Iat Automobile vs. Long Yuan Construction | Iat Automobile vs. Sihui Fuji Electronics | Iat Automobile vs. Jinlong Machinery Electronic | Iat Automobile vs. Xinya Electronic Co |
| HaiXin Foods vs. Masterwork Machinery | HaiXin Foods vs. Xingguang Agricultural Mach | HaiXin Foods vs. Kuangda Technology Group | HaiXin Foods vs. Shaanxi Construction Machinery |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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