Correlation Between Iat Automobile and Ningbo Homelink
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By analyzing existing cross correlation between Iat Automobile Technology and Ningbo Homelink Eco iTech, you can compare the effects of market volatilities on Iat Automobile and Ningbo Homelink 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 Ningbo Homelink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Ningbo Homelink.
Diversification Opportunities for Iat Automobile and Ningbo Homelink
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and Ningbo is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Ningbo Homelink Eco iTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Homelink Eco 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 Ningbo Homelink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Homelink Eco has no effect on the direction of Iat Automobile i.e., Iat Automobile and Ningbo Homelink go up and down completely randomly.
Pair Corralation between Iat Automobile and Ningbo Homelink
Assuming the 90 days trading horizon Iat Automobile Technology is expected to under-perform the Ningbo Homelink. In addition to that, Iat Automobile is 1.05 times more volatile than Ningbo Homelink Eco iTech. It trades about -0.21 of its total potential returns per unit of risk. Ningbo Homelink Eco iTech is currently generating about -0.09 per unit of volatility. If you would invest 1,750 in Ningbo Homelink Eco iTech on October 12, 2024 and sell it today you would lose (120.00) from holding Ningbo Homelink Eco iTech or give up 6.86% 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. Ningbo Homelink Eco iTech
Performance |
| Timeline |
| Iat Automobile Technology |
| Ningbo Homelink Eco |
Iat Automobile and Ningbo Homelink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Ningbo Homelink
The main advantage of trading using opposite Iat Automobile and Ningbo Homelink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Ningbo Homelink 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 Ningbo Homelink will offset losses from the drop in Ningbo Homelink's long position.| Iat Automobile vs. Long Yuan Construction | Iat Automobile vs. Sihui Fuji Electronics | Iat Automobile vs. Jinlong Machinery Electronic | Iat Automobile vs. Xinya Electronic Co |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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