Correlation Between Iat Automobile and Northking Information
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By analyzing existing cross correlation between Iat Automobile Technology and Northking Information Technology, you can compare the effects of market volatilities on Iat Automobile and Northking Information 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 Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Northking Information.
Diversification Opportunities for Iat Automobile and Northking Information
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and Northking is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information 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 Northking Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northking Information has no effect on the direction of Iat Automobile i.e., Iat Automobile and Northking Information go up and down completely randomly.
Pair Corralation between Iat Automobile and Northking Information
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.41 times more return on investment than Northking Information. However, Iat Automobile is 1.41 times more volatile than Northking Information Technology. It trades about 0.14 of its potential returns per unit of risk. Northking Information Technology is currently generating about -0.07 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Northking Information Technolo
Performance |
| Timeline |
| Iat Automobile Technology |
| Northking Information |
Iat Automobile and Northking Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Northking Information
The main advantage of trading using opposite Iat Automobile and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Northking Information 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 Northking Information will offset losses from the drop in Northking Information'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 |
| Northking Information vs. Gansu Jiu Steel | Northking Information vs. Shandong Mining Machinery | Northking Information vs. Aba Chemicals Corp | Northking Information vs. BlueFocus Communication Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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