Correlation Between Iat Automobile and Zhengzhou Coal
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By analyzing existing cross correlation between Iat Automobile Technology and Zhengzhou Coal Mining, you can compare the effects of market volatilities on Iat Automobile and Zhengzhou Coal 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 Zhengzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Zhengzhou Coal.
Diversification Opportunities for Iat Automobile and Zhengzhou Coal
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and Zhengzhou is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Zhengzhou Coal Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Coal Mining 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 Zhengzhou Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Coal Mining has no effect on the direction of Iat Automobile i.e., Iat Automobile and Zhengzhou Coal go up and down completely randomly.
Pair Corralation between Iat Automobile and Zhengzhou Coal
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.85 times more return on investment than Zhengzhou Coal. However, Iat Automobile is 1.85 times more volatile than Zhengzhou Coal Mining. It trades about 0.06 of its potential returns per unit of risk. Zhengzhou Coal Mining is currently generating about -0.06 per unit of risk. If you would invest 1,018 in Iat Automobile Technology on September 15, 2024 and sell it today you would earn a total of 243.00 from holding Iat Automobile Technology or generate 23.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Zhengzhou Coal Mining
Performance |
| Timeline |
| Iat Automobile Technology |
| Zhengzhou Coal Mining |
Iat Automobile and Zhengzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Zhengzhou Coal
The main advantage of trading using opposite Iat Automobile and Zhengzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Zhengzhou Coal 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 Zhengzhou Coal will offset losses from the drop in Zhengzhou Coal's long position.| Iat Automobile vs. BeiGene | Iat Automobile vs. Kweichow Moutai Co | Iat Automobile vs. Beijing Roborock Technology | Iat Automobile vs. G bits Network Technology |
| Zhengzhou Coal vs. Sanbo Hospital Management | Zhengzhou Coal vs. China National Software | Zhengzhou Coal vs. Beijing Yanjing Brewery | Zhengzhou Coal vs. Shanghai Rongtai Health |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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