Correlation Between Iat Automobile and China Life
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By analyzing existing cross correlation between Iat Automobile Technology and China Life Insurance, you can compare the effects of market volatilities on Iat Automobile and China Life 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 Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and China Life.
Diversification Opportunities for Iat Automobile and China Life
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Iat and China is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and China Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Life Insurance 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 Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Life Insurance has no effect on the direction of Iat Automobile i.e., Iat Automobile and China Life go up and down completely randomly.
Pair Corralation between Iat Automobile and China Life
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.76 times more return on investment than China Life. However, Iat Automobile is 1.76 times more volatile than China Life Insurance. It trades about 0.07 of its potential returns per unit of risk. China Life Insurance is currently generating about -0.07 per unit of risk. If you would invest 1,130 in Iat Automobile Technology on November 1, 2024 and sell it today you would earn a total of 43.00 from holding Iat Automobile Technology or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. China Life Insurance
Performance |
| Timeline |
| Iat Automobile Technology |
| China Life Insurance |
Iat Automobile and China Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and China Life
The main advantage of trading using opposite Iat Automobile and China Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, China Life 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 Life will offset losses from the drop in China Life's long position.| Iat Automobile vs. CITIC Metal Co | Iat Automobile vs. Peoples Insurance of | Iat Automobile vs. Sino Platinum Metals Co | Iat Automobile vs. Jiujiang Shanshui Technology |
| China Life vs. Changchun Engley Automobile | China Life vs. Iat Automobile Technology | China Life vs. China Satellite Communications | China Life vs. Guangxi Wuzhou Communications |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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