Correlation Between Iat Automobile and PetroChina
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By analyzing existing cross correlation between Iat Automobile Technology and PetroChina Co Ltd, you can compare the effects of market volatilities on Iat Automobile and PetroChina 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 PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and PetroChina.
Diversification Opportunities for Iat Automobile and PetroChina
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Iat and PetroChina is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina 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 PetroChina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroChina has no effect on the direction of Iat Automobile i.e., Iat Automobile and PetroChina go up and down completely randomly.
Pair Corralation between Iat Automobile and PetroChina
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 4.52 times more return on investment than PetroChina. However, Iat Automobile is 4.52 times more volatile than PetroChina Co Ltd. It trades about 0.1 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.11 per unit of risk. If you would invest 1,150 in Iat Automobile Technology on September 3, 2024 and sell it today you would earn a total of 80.00 from holding Iat Automobile Technology or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. PetroChina Co Ltd
Performance |
| Timeline |
| Iat Automobile Technology |
| PetroChina |
Iat Automobile and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and PetroChina
The main advantage of trading using opposite Iat Automobile and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, PetroChina 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 PetroChina will offset losses from the drop in PetroChina's long position.| Iat Automobile vs. PetroChina Co Ltd | Iat Automobile vs. China Mobile Limited | Iat Automobile vs. Industrial and Commercial | Iat Automobile vs. China Life Insurance |
| PetroChina vs. China Express Airlines | PetroChina vs. Xinhua Winshare Publishing | PetroChina vs. Jinhui Liquor Co | PetroChina vs. Beijing Kaiwen Education |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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