Correlation Between Iat Automobile and China Enterprise
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By analyzing existing cross correlation between Iat Automobile Technology and China Enterprise Co, you can compare the effects of market volatilities on Iat Automobile and China Enterprise 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 Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and China Enterprise.
Diversification Opportunities for Iat Automobile and China Enterprise
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and China is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and China Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Enterprise 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 Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Enterprise has no effect on the direction of Iat Automobile i.e., Iat Automobile and China Enterprise go up and down completely randomly.
Pair Corralation between Iat Automobile and China Enterprise
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.08 times more return on investment than China Enterprise. However, Iat Automobile is 1.08 times more volatile than China Enterprise Co. It trades about -0.04 of its potential returns per unit of risk. China Enterprise Co is currently generating about -0.04 per unit of risk. If you would invest 1,198 in Iat Automobile Technology on September 28, 2024 and sell it today you would lose (43.00) from holding Iat Automobile Technology or give up 3.59% 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. China Enterprise Co
Performance |
| Timeline |
| Iat Automobile Technology |
| China Enterprise |
Iat Automobile and China Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and China Enterprise
The main advantage of trading using opposite Iat Automobile and China Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, China Enterprise 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 Enterprise will offset losses from the drop in China Enterprise'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 |
| China Enterprise vs. INKON Life Technology | China Enterprise vs. Chahua Modern Housewares | China Enterprise vs. Anhui Deli Household | China Enterprise vs. China World Trade |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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