Correlation Between Iat Automobile and Heilongjiang Transport
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By analyzing existing cross correlation between Iat Automobile Technology and Heilongjiang Transport Development, you can compare the effects of market volatilities on Iat Automobile and Heilongjiang Transport 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 Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Heilongjiang Transport.
Diversification Opportunities for Iat Automobile and Heilongjiang Transport
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and Heilongjiang is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport 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 Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Iat Automobile i.e., Iat Automobile and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Iat Automobile and Heilongjiang Transport
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.32 times more return on investment than Heilongjiang Transport. However, Iat Automobile is 1.32 times more volatile than Heilongjiang Transport Development. It trades about -0.22 of its potential returns per unit of risk. Heilongjiang Transport Development is currently generating about -0.34 per unit of risk. If you would invest 1,325 in Iat Automobile Technology on October 12, 2024 and sell it today you would lose (198.00) from holding Iat Automobile Technology or give up 14.94% 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. Heilongjiang Transport Develop
Performance |
| Timeline |
| Iat Automobile Technology |
| Heilongjiang Transport |
Iat Automobile and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Heilongjiang Transport
The main advantage of trading using opposite Iat Automobile and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport's long position.| Iat Automobile vs. China Minmetals Rare | Iat Automobile vs. Top Choice Medical | Iat Automobile vs. Anhui Tongguan Copper | Iat Automobile vs. Xiangyu Medical Co |
| Heilongjiang Transport vs. Ningbo Tech Bank Co | Heilongjiang Transport vs. Huatian Hotel Group | Heilongjiang Transport vs. Jinling Hotel Corp | Heilongjiang Transport vs. Jiangsu Financial Leasing |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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