Correlation Between Iat Automobile and Beijing Enlight
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By analyzing existing cross correlation between Iat Automobile Technology and Beijing Enlight Media, you can compare the effects of market volatilities on Iat Automobile and Beijing Enlight 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 Beijing Enlight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Beijing Enlight.
Diversification Opportunities for Iat Automobile and Beijing Enlight
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and Beijing is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Beijing Enlight Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Enlight Media 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 Beijing Enlight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Enlight Media has no effect on the direction of Iat Automobile i.e., Iat Automobile and Beijing Enlight go up and down completely randomly.
Pair Corralation between Iat Automobile and Beijing Enlight
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.23 times more return on investment than Beijing Enlight. However, Iat Automobile is 1.23 times more volatile than Beijing Enlight Media. It trades about 0.11 of its potential returns per unit of risk. Beijing Enlight Media is currently generating about 0.13 per unit of risk. If you would invest 839.00 in Iat Automobile Technology on October 18, 2024 and sell it today you would earn a total of 318.00 from holding Iat Automobile Technology or generate 37.9% 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. Beijing Enlight Media
Performance |
| Timeline |
| Iat Automobile Technology |
| Beijing Enlight Media |
Iat Automobile and Beijing Enlight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Beijing Enlight
The main advantage of trading using opposite Iat Automobile and Beijing Enlight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Beijing Enlight 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 Beijing Enlight will offset losses from the drop in Beijing Enlight's long position.| Iat Automobile vs. Nuode Investment Co | Iat Automobile vs. Gifore Agricultural Machinery | Iat Automobile vs. Chengdu Xingrong Investment | Iat Automobile vs. Nanxing Furniture Machinery |
| Beijing Enlight vs. Guangxi Wuzhou Communications | Beijing Enlight vs. Iat Automobile Technology | Beijing Enlight vs. China Mobile Limited | Beijing Enlight vs. Dongfeng Automobile Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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