Correlation Between Iat Automobile and Tianjin Pengling
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By analyzing existing cross correlation between Iat Automobile Technology and Tianjin Pengling Rubber, you can compare the effects of market volatilities on Iat Automobile and Tianjin Pengling 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 Tianjin Pengling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Tianjin Pengling.
Diversification Opportunities for Iat Automobile and Tianjin Pengling
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Iat and Tianjin is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Tianjin Pengling Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Pengling Rubber 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 Tianjin Pengling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Pengling Rubber has no effect on the direction of Iat Automobile i.e., Iat Automobile and Tianjin Pengling go up and down completely randomly.
Pair Corralation between Iat Automobile and Tianjin Pengling
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.25 times more return on investment than Tianjin Pengling. However, Iat Automobile is 1.25 times more volatile than Tianjin Pengling Rubber. It trades about -0.19 of its potential returns per unit of risk. Tianjin Pengling Rubber is currently generating about -0.36 per unit of risk. If you would invest 1,261 in Iat Automobile Technology on October 14, 2024 and sell it today you would lose (161.00) from holding Iat Automobile Technology or give up 12.77% 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. Tianjin Pengling Rubber
Performance |
| Timeline |
| Iat Automobile Technology |
| Tianjin Pengling Rubber |
Iat Automobile and Tianjin Pengling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Tianjin Pengling
The main advantage of trading using opposite Iat Automobile and Tianjin Pengling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Tianjin Pengling 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 Tianjin Pengling will offset losses from the drop in Tianjin Pengling's long position.| Iat Automobile vs. Zhongrun Resources Investment | Iat Automobile vs. Allgens Medical Technology | Iat Automobile vs. Shanghai Material Trading | Iat Automobile vs. Harbin Hatou Investment |
| Tianjin Pengling vs. Smartgiant Technology Co | Tianjin Pengling vs. Tianshui Huatian Technology | Tianjin Pengling vs. Iat Automobile Technology | Tianjin Pengling vs. Sinofibers Technology 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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