Correlation Between Iat Automobile and Beken Corp
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By analyzing existing cross correlation between Iat Automobile Technology and Beken Corp, you can compare the effects of market volatilities on Iat Automobile and Beken Corp 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 Beken Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Beken Corp.
Diversification Opportunities for Iat Automobile and Beken Corp
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iat and Beken is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Beken Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beken Corp 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 Beken Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beken Corp has no effect on the direction of Iat Automobile i.e., Iat Automobile and Beken Corp go up and down completely randomly.
Pair Corralation between Iat Automobile and Beken Corp
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.2 times more return on investment than Beken Corp. However, Iat Automobile is 1.2 times more volatile than Beken Corp. It trades about 0.02 of its potential returns per unit of risk. Beken Corp is currently generating about 0.02 per unit of risk. If you would invest 1,134 in Iat Automobile Technology on September 26, 2024 and sell it today you would earn a total of 46.00 from holding Iat Automobile Technology or generate 4.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Beken Corp
Performance |
| Timeline |
| Iat Automobile Technology |
| Beken Corp |
Iat Automobile and Beken Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Beken Corp
The main advantage of trading using opposite Iat Automobile and Beken Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Beken Corp 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 Beken Corp will offset losses from the drop in Beken Corp's long position.| Iat Automobile vs. China Life Insurance | Iat Automobile vs. Cinda Securities Co | Iat Automobile vs. Piotech Inc A | Iat Automobile vs. Dongxing Sec Co |
| Beken Corp vs. Industrial and Commercial | Beken Corp vs. China Construction Bank | Beken Corp vs. Agricultural Bank of | Beken Corp vs. Bank of China |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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