Correlation Between Iat Automobile and Tianjin Capital
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By analyzing existing cross correlation between Iat Automobile Technology and Tianjin Capital Environmental, you can compare the effects of market volatilities on Iat Automobile and Tianjin Capital 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 Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Tianjin Capital.
Diversification Opportunities for Iat Automobile and Tianjin Capital
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iat and Tianjin is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Tianjin Capital Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Capital Envi 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 Tianjin Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Capital Envi has no effect on the direction of Iat Automobile i.e., Iat Automobile and Tianjin Capital go up and down completely randomly.
Pair Corralation between Iat Automobile and Tianjin Capital
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 2.38 times more return on investment than Tianjin Capital. However, Iat Automobile is 2.38 times more volatile than Tianjin Capital Environmental. It trades about 0.02 of its potential returns per unit of risk. Tianjin Capital Environmental is currently generating about 0.0 per unit of risk. If you would invest 1,282 in Iat Automobile Technology on August 24, 2024 and sell it today you would lose (31.00) from holding Iat Automobile Technology or give up 2.42% 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. Tianjin Capital Environmental
Performance |
| Timeline |
| Iat Automobile Technology |
| Tianjin Capital Envi |
Iat Automobile and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Tianjin Capital
The main advantage of trading using opposite Iat Automobile and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Tianjin Capital 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 Tianjin Capital will offset losses from the drop in Tianjin Capital's long position.| Iat Automobile vs. Kweichow Moutai Co | Iat Automobile vs. Contemporary Amperex Technology | Iat Automobile vs. G bits Network Technology | Iat Automobile vs. Beijing Roborock Technology |
| Tianjin Capital vs. Iat Automobile Technology | Tianjin Capital vs. Zhongtong Guomai Communication | Tianjin Capital vs. Sichuan Fulin Transportation | Tianjin Capital vs. Shaanxi Broadcast TV |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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