Correlation Between Iat Automobile and Jiangsu Zhongtian
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By analyzing existing cross correlation between Iat Automobile Technology and Jiangsu Zhongtian Technology, you can compare the effects of market volatilities on Iat Automobile and Jiangsu Zhongtian 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 Jiangsu Zhongtian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Jiangsu Zhongtian.
Diversification Opportunities for Iat Automobile and Jiangsu Zhongtian
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and Jiangsu is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Jiangsu Zhongtian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Zhongtian 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 Jiangsu Zhongtian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Zhongtian has no effect on the direction of Iat Automobile i.e., Iat Automobile and Jiangsu Zhongtian go up and down completely randomly.
Pair Corralation between Iat Automobile and Jiangsu Zhongtian
Assuming the 90 days trading horizon Iat Automobile Technology is expected to under-perform the Jiangsu Zhongtian. In addition to that, Iat Automobile is 2.06 times more volatile than Jiangsu Zhongtian Technology. It trades about -0.08 of its total potential returns per unit of risk. Jiangsu Zhongtian Technology is currently generating about -0.09 per unit of volatility. If you would invest 1,565 in Jiangsu Zhongtian Technology on September 26, 2024 and sell it today you would lose (54.00) from holding Jiangsu Zhongtian Technology or give up 3.45% 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. Jiangsu Zhongtian Technology
Performance |
| Timeline |
| Iat Automobile Technology |
| Jiangsu Zhongtian |
Iat Automobile and Jiangsu Zhongtian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Jiangsu Zhongtian
The main advantage of trading using opposite Iat Automobile and Jiangsu Zhongtian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Jiangsu Zhongtian 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 Jiangsu Zhongtian will offset losses from the drop in Jiangsu Zhongtian's long position.| Iat Automobile vs. China Life Insurance | Iat Automobile vs. Cinda Securities Co | Iat Automobile vs. Piotech Inc A | Iat Automobile vs. Dongxing Sec Co |
| Jiangsu Zhongtian vs. Kweichow Moutai Co | Jiangsu Zhongtian vs. Contemporary Amperex Technology | Jiangsu Zhongtian vs. G bits Network Technology | Jiangsu Zhongtian vs. BYD Co Ltd |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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