Correlation Between Iat Automobile and Xiamen CD
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By analyzing existing cross correlation between Iat Automobile Technology and Xiamen CD, you can compare the effects of market volatilities on Iat Automobile and Xiamen CD 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 Xiamen CD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Xiamen CD.
Diversification Opportunities for Iat Automobile and Xiamen CD
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Iat and Xiamen is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Xiamen CD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen CD 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 Xiamen CD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen CD has no effect on the direction of Iat Automobile i.e., Iat Automobile and Xiamen CD go up and down completely randomly.
Pair Corralation between Iat Automobile and Xiamen CD
Assuming the 90 days trading horizon Iat Automobile Technology is expected to under-perform the Xiamen CD. In addition to that, Iat Automobile is 1.9 times more volatile than Xiamen CD. It trades about -0.02 of its total potential returns per unit of risk. Xiamen CD is currently generating about -0.02 per unit of volatility. If you would invest 980.00 in Xiamen CD on October 30, 2024 and sell it today you would lose (21.00) from holding Xiamen CD or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Xiamen CD
Performance |
| Timeline |
| Iat Automobile Technology |
| Xiamen CD |
Iat Automobile and Xiamen CD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Xiamen CD
The main advantage of trading using opposite Iat Automobile and Xiamen CD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Xiamen CD 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 Xiamen CD will offset losses from the drop in Xiamen CD's long position.| Iat Automobile vs. China Asset Management | Iat Automobile vs. Zhongzhu Medical Holdings | Iat Automobile vs. Allgens Medical Technology | Iat Automobile vs. Xiangyu Medical Co |
| Xiamen CD vs. Guocheng Mining Co | Xiamen CD vs. Chengtun Mining Group | Xiamen CD vs. Xinjiang Baodi Mining | Xiamen CD vs. China Sports Industry |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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