Correlation Between Iat Automobile and China Eastern
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By analyzing existing cross correlation between Iat Automobile Technology and China Eastern Airlines, you can compare the effects of market volatilities on Iat Automobile and China Eastern 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 China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and China Eastern.
Diversification Opportunities for Iat Automobile and China Eastern
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iat and China is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines 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 China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of Iat Automobile i.e., Iat Automobile and China Eastern go up and down completely randomly.
Pair Corralation between Iat Automobile and China Eastern
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 2.49 times more return on investment than China Eastern. However, Iat Automobile is 2.49 times more volatile than China Eastern Airlines. It trades about 0.02 of its potential returns per unit of risk. China Eastern Airlines is currently generating about -0.03 per unit of risk. If you would invest 1,121 in Iat Automobile Technology on September 15, 2024 and sell it today you would earn a total of 140.00 from holding Iat Automobile Technology or generate 12.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. China Eastern Airlines
Performance |
| Timeline |
| Iat Automobile Technology |
| China Eastern Airlines |
Iat Automobile and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and China Eastern
The main advantage of trading using opposite Iat Automobile and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, China Eastern 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 China Eastern will offset losses from the drop in China Eastern's long position.| Iat Automobile vs. BeiGene | Iat Automobile vs. Kweichow Moutai Co | Iat Automobile vs. Beijing Roborock Technology | Iat Automobile vs. G bits Network Technology |
| China Eastern vs. Sichuan Teway Food | China Eastern vs. Eastroc Beverage Group | China Eastern vs. Jiamei Food Packaging | China Eastern vs. Muyuan Foodstuff 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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