Correlation Between Iat Automobile and Dongguan Aohai
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By analyzing existing cross correlation between Iat Automobile Technology and Dongguan Aohai Technology, you can compare the effects of market volatilities on Iat Automobile and Dongguan Aohai 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 Dongguan Aohai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Dongguan Aohai.
Diversification Opportunities for Iat Automobile and Dongguan Aohai
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Iat and Dongguan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Dongguan Aohai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Aohai Technology 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 Dongguan Aohai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Aohai Technology has no effect on the direction of Iat Automobile i.e., Iat Automobile and Dongguan Aohai go up and down completely randomly.
Pair Corralation between Iat Automobile and Dongguan Aohai
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.18 times more return on investment than Dongguan Aohai. However, Iat Automobile is 1.18 times more volatile than Dongguan Aohai Technology. It trades about 0.07 of its potential returns per unit of risk. Dongguan Aohai Technology is currently generating about 0.05 per unit of risk. If you would invest 1,017 in Iat Automobile Technology on September 12, 2024 and sell it today you would earn a total of 308.00 from holding Iat Automobile Technology or generate 30.29% 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. Dongguan Aohai Technology
Performance |
| Timeline |
| Iat Automobile Technology |
| Dongguan Aohai Technology |
Iat Automobile and Dongguan Aohai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Dongguan Aohai
The main advantage of trading using opposite Iat Automobile and Dongguan Aohai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Dongguan Aohai 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 Dongguan Aohai will offset losses from the drop in Dongguan Aohai'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 |
| Dongguan Aohai vs. Agricultural Bank of | Dongguan Aohai vs. Industrial and Commercial | Dongguan Aohai vs. Bank of China | Dongguan Aohai vs. PetroChina Co Ltd |
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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