Correlation Between Iat Automobile and China Construction
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By analyzing existing cross correlation between Iat Automobile Technology and China Construction Bank, you can compare the effects of market volatilities on Iat Automobile and China Construction 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 Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and China Construction.
Diversification Opportunities for Iat Automobile and China Construction
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Iat and China is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and China Construction Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Construction Bank 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 Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Construction Bank has no effect on the direction of Iat Automobile i.e., Iat Automobile and China Construction go up and down completely randomly.
Pair Corralation between Iat Automobile and China Construction
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 2.29 times more return on investment than China Construction. However, Iat Automobile is 2.29 times more volatile than China Construction Bank. It trades about 0.01 of its potential returns per unit of risk. China Construction Bank is currently generating about -0.09 per unit of risk. If you would invest 1,178 in Iat Automobile Technology on October 30, 2024 and sell it today you would lose (5.00) from holding Iat Automobile Technology or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. China Construction Bank
Performance |
| Timeline |
| Iat Automobile Technology |
| China Construction Bank |
Iat Automobile and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and China Construction
The main advantage of trading using opposite Iat Automobile and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, China Construction 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 Construction will offset losses from the drop in China Construction's long position.| Iat Automobile vs. China Asset Management | Iat Automobile vs. Zhongzhu Medical Holdings | Iat Automobile vs. Allgens Medical Technology | Iat Automobile vs. Xiangyu Medical Co |
| China Construction vs. Beingmate Baby Child | China Construction vs. Runjian Communication Co | China Construction vs. Fiberhome Telecommunication Technologies | China Construction vs. AUPU Home Style |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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