Correlation Between Iat Automobile and Xinjiang Tianshun
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By analyzing existing cross correlation between Iat Automobile Technology and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on Iat Automobile and Xinjiang Tianshun 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 Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Xinjiang Tianshun.
Diversification Opportunities for Iat Automobile and Xinjiang Tianshun
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and Xinjiang is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply 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 Xinjiang Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of Iat Automobile i.e., Iat Automobile and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between Iat Automobile and Xinjiang Tianshun
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 0.88 times more return on investment than Xinjiang Tianshun. However, Iat Automobile Technology is 1.14 times less risky than Xinjiang Tianshun. It trades about -0.36 of its potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about -0.4 per unit of risk. If you would invest 1,295 in Iat Automobile Technology on October 9, 2024 and sell it today you would lose (240.00) from holding Iat Automobile Technology or give up 18.53% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.24% |
Values | Daily Returns |
Iat Automobile Technology vs. Xinjiang Tianshun Supply
Performance |
Timeline |
Iat Automobile Technology |
Xinjiang Tianshun Supply |
Iat Automobile and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Iat Automobile and Xinjiang Tianshun
The main advantage of trading using opposite Iat Automobile and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Xinjiang Tianshun 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 Xinjiang Tianshun will offset losses from the drop in Xinjiang Tianshun's long position.Iat Automobile vs. Linewell Software Co | Iat Automobile vs. Holitech Technology Co | Iat Automobile vs. Digiwin Software Co | Iat Automobile vs. Guilin Seamild Foods |
Xinjiang Tianshun vs. Guangdong Shenglu Telecommunication | Xinjiang Tianshun vs. China Satellite Communications | Xinjiang Tianshun vs. TianJin 712 Communication | Xinjiang Tianshun vs. Dr Peng Telecom |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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