Correlation Between Iat Automobile and Wintao Communications
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By analyzing existing cross correlation between Iat Automobile Technology and Wintao Communications Co, you can compare the effects of market volatilities on Iat Automobile and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Wintao Communications.
Diversification Opportunities for Iat Automobile and Wintao Communications
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and Wintao is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Iat Automobile i.e., Iat Automobile and Wintao Communications go up and down completely randomly.
Pair Corralation between Iat Automobile and Wintao Communications
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.25 times more return on investment than Wintao Communications. However, Iat Automobile is 1.25 times more volatile than Wintao Communications Co. It trades about -0.03 of its potential returns per unit of risk. Wintao Communications Co is currently generating about -0.04 per unit of risk. If you would invest 1,268 in Iat Automobile Technology on October 17, 2024 and sell it today you would lose (93.00) from holding Iat Automobile Technology or give up 7.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Wintao Communications Co
Performance |
| Timeline |
| Iat Automobile Technology |
| Wintao Communications |
Iat Automobile and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Wintao Communications
The main advantage of trading using opposite Iat Automobile and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| Iat Automobile vs. Digiwin Software Co | Iat Automobile vs. Guangdong Xiongsu Technology | Iat Automobile vs. Ningbo Kangqiang Electronics | Iat Automobile vs. Hubei Forbon Technology |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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