Correlation Between Iat Automobile and Anhui Transport
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By analyzing existing cross correlation between Iat Automobile Technology and Anhui Transport Consulting, you can compare the effects of market volatilities on Iat Automobile and Anhui Transport 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 Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Anhui Transport.
Diversification Opportunities for Iat Automobile and Anhui Transport
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iat and Anhui is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons 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 Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of Iat Automobile i.e., Iat Automobile and Anhui Transport go up and down completely randomly.
Pair Corralation between Iat Automobile and Anhui Transport
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.62 times more return on investment than Anhui Transport. However, Iat Automobile is 1.62 times more volatile than Anhui Transport Consulting. It trades about 0.06 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.02 per unit of risk. If you would invest 1,146 in Iat Automobile Technology on August 29, 2024 and sell it today you would earn a total of 40.00 from holding Iat Automobile Technology or generate 3.49% 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. Anhui Transport Consulting
Performance |
| Timeline |
| Iat Automobile Technology |
| Anhui Transport Cons |
Iat Automobile and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Anhui Transport
The main advantage of trading using opposite Iat Automobile and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport's long position.| Iat Automobile vs. Servyou Software Group | Iat Automobile vs. Glodon Software Co | Iat Automobile vs. Guangzhou Jinyi Media | Iat Automobile vs. Beijing Bashi Media |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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