Correlation Between Iat Automobile and Cultural Investment
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By analyzing existing cross correlation between Iat Automobile Technology and Cultural Investment Holdings, you can compare the effects of market volatilities on Iat Automobile and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Cultural Investment.
Diversification Opportunities for Iat Automobile and Cultural Investment
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iat and Cultural is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Iat Automobile i.e., Iat Automobile and Cultural Investment go up and down completely randomly.
Pair Corralation between Iat Automobile and Cultural Investment
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 0.9 times more return on investment than Cultural Investment. However, Iat Automobile Technology is 1.11 times less risky than Cultural Investment. It trades about 0.0 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about -0.01 per unit of risk. If you would invest 1,549 in Iat Automobile Technology on September 4, 2024 and sell it today you would lose (278.00) from holding Iat Automobile Technology or give up 17.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Cultural Investment Holdings
Performance |
| Timeline |
| Iat Automobile Technology |
| Cultural Investment |
Iat Automobile and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Cultural Investment
The main advantage of trading using opposite Iat Automobile and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Iat Automobile vs. Cultural Investment Holdings | Iat Automobile vs. Gome Telecom Equipment | Iat Automobile vs. Bus Online Co | Iat Automobile vs. Holitech Technology Co |
| Cultural Investment vs. China State Construction | Cultural Investment vs. Poly Real Estate | Cultural Investment vs. China Vanke Co | Cultural Investment vs. China Merchants Shekou |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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