Correlation Between Iat Automobile and WuXi Xinje
Specify exactly 2 symbols:
By analyzing existing cross correlation between Iat Automobile Technology and WuXi Xinje Electric, you can compare the effects of market volatilities on Iat Automobile and WuXi Xinje 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 WuXi Xinje. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and WuXi Xinje.
Diversification Opportunities for Iat Automobile and WuXi Xinje
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and WuXi is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and WuXi Xinje Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WuXi Xinje Electric 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 WuXi Xinje. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WuXi Xinje Electric has no effect on the direction of Iat Automobile i.e., Iat Automobile and WuXi Xinje go up and down completely randomly.
Pair Corralation between Iat Automobile and WuXi Xinje
Assuming the 90 days trading horizon Iat Automobile is expected to generate 1.55 times less return on investment than WuXi Xinje. In addition to that, Iat Automobile is 1.5 times more volatile than WuXi Xinje Electric. It trades about 0.05 of its total potential returns per unit of risk. WuXi Xinje Electric is currently generating about 0.12 per unit of volatility. If you would invest 2,858 in WuXi Xinje Electric on September 26, 2024 and sell it today you would earn a total of 1,230 from holding WuXi Xinje Electric or generate 43.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. WuXi Xinje Electric
Performance |
| Timeline |
| Iat Automobile Technology |
| WuXi Xinje Electric |
Iat Automobile and WuXi Xinje Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and WuXi Xinje
The main advantage of trading using opposite Iat Automobile and WuXi Xinje positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, WuXi Xinje 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 WuXi Xinje will offset losses from the drop in WuXi Xinje'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 |
| WuXi Xinje vs. Gansu Huangtai Wine marketing | WuXi Xinje vs. China Sports Industry | WuXi Xinje vs. Wuhan Hvsen Biotechnology | WuXi Xinje vs. HUAQIN TECHNOLOGY LTD |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |