Correlation Between Iat Automobile and Lingyuan Iron
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By analyzing existing cross correlation between Iat Automobile Technology and Lingyuan Iron Steel, you can compare the effects of market volatilities on Iat Automobile and Lingyuan Iron 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 Lingyuan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Lingyuan Iron.
Diversification Opportunities for Iat Automobile and Lingyuan Iron
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and Lingyuan is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Lingyuan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lingyuan Iron Steel 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 Lingyuan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lingyuan Iron Steel has no effect on the direction of Iat Automobile i.e., Iat Automobile and Lingyuan Iron go up and down completely randomly.
Pair Corralation between Iat Automobile and Lingyuan Iron
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.36 times more return on investment than Lingyuan Iron. However, Iat Automobile is 1.36 times more volatile than Lingyuan Iron Steel. It trades about 0.01 of its potential returns per unit of risk. Lingyuan Iron Steel is currently generating about -0.04 per unit of risk. If you would invest 1,164 in Iat Automobile Technology on October 29, 2024 and sell it today you would lose (14.00) from holding Iat Automobile Technology or give up 1.2% 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. Lingyuan Iron Steel
Performance |
| Timeline |
| Iat Automobile Technology |
| Lingyuan Iron Steel |
Iat Automobile and Lingyuan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Lingyuan Iron
The main advantage of trading using opposite Iat Automobile and Lingyuan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Lingyuan Iron 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 Lingyuan Iron will offset losses from the drop in Lingyuan Iron's long position.| Iat Automobile vs. Puya Semiconductor Shanghai | Iat Automobile vs. Aluminum Corp of | Iat Automobile vs. StarPower Semiconductor | Iat Automobile vs. Shanghai Yanpu Metal |
| Lingyuan Iron vs. Malion New Materials | Lingyuan Iron vs. Chengdu Spaceon Electronics | Lingyuan Iron vs. Sanxiang Advanced Materials | Lingyuan Iron vs. Shanghai CEO Environmental |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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