Correlation Between Iat Automobile and Jiujiang Shanshui
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By analyzing existing cross correlation between Iat Automobile Technology and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Iat Automobile and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Jiujiang Shanshui.
Diversification Opportunities for Iat Automobile and Jiujiang Shanshui
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and Jiujiang is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Iat Automobile i.e., Iat Automobile and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Iat Automobile and Jiujiang Shanshui
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 2.59 times more return on investment than Jiujiang Shanshui. However, Iat Automobile is 2.59 times more volatile than Jiujiang Shanshui Technology. It trades about 0.2 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about 0.16 per unit of risk. If you would invest 1,055 in Iat Automobile Technology on November 5, 2024 and sell it today you would earn a total of 118.00 from holding Iat Automobile Technology or generate 11.18% 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. Jiujiang Shanshui Technology
Performance |
Timeline |
Iat Automobile Technology |
Jiujiang Shanshui |
Iat Automobile and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Iat Automobile and Jiujiang Shanshui
The main advantage of trading using opposite Iat Automobile and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.Iat Automobile vs. Jiugui Liquor Co | Iat Automobile vs. Chison Medical Technologies | Iat Automobile vs. New Hope Dairy | Iat Automobile vs. Suzhou Weizhixiang Food |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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