Correlation Between Iat Automobile and Nanjing OLO
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By analyzing existing cross correlation between Iat Automobile Technology and Nanjing OLO Home, you can compare the effects of market volatilities on Iat Automobile and Nanjing OLO 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 Nanjing OLO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Nanjing OLO.
Diversification Opportunities for Iat Automobile and Nanjing OLO
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Iat and Nanjing is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Nanjing OLO Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing OLO Home 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 Nanjing OLO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing OLO Home has no effect on the direction of Iat Automobile i.e., Iat Automobile and Nanjing OLO go up and down completely randomly.
Pair Corralation between Iat Automobile and Nanjing OLO
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.02 times more return on investment than Nanjing OLO. However, Iat Automobile is 1.02 times more volatile than Nanjing OLO Home. It trades about -0.02 of its potential returns per unit of risk. Nanjing OLO Home is currently generating about -0.05 per unit of risk. If you would invest 1,230 in Iat Automobile Technology on October 30, 2024 and sell it today you would lose (57.00) from holding Iat Automobile Technology or give up 4.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Nanjing OLO Home
Performance |
| Timeline |
| Iat Automobile Technology |
| Nanjing OLO Home |
Iat Automobile and Nanjing OLO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Nanjing OLO
The main advantage of trading using opposite Iat Automobile and Nanjing OLO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Nanjing OLO 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 Nanjing OLO will offset losses from the drop in Nanjing OLO'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 |
| Nanjing OLO vs. Shenzhen Centralcon Investment | Nanjing OLO vs. Sanbo Hospital Management | Nanjing OLO vs. Harbin Air Conditioning | Nanjing OLO vs. China Eastern Airlines |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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