Correlation Between Iat Automobile and Jiangsu Xinri
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By analyzing existing cross correlation between Iat Automobile Technology and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Iat Automobile and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Jiangsu Xinri.
Diversification Opportunities for Iat Automobile and Jiangsu Xinri
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and Jiangsu is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Iat Automobile i.e., Iat Automobile and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Iat Automobile and Jiangsu Xinri
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.61 times more return on investment than Jiangsu Xinri. However, Iat Automobile is 1.61 times more volatile than Jiangsu Xinri E Vehicle. It trades about 0.06 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about -0.06 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Iat Automobile Technology |
| Jiangsu Xinri E |
Iat Automobile and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Jiangsu Xinri
The main advantage of trading using opposite Iat Automobile and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Iat Automobile vs. Xian International Medical | Iat Automobile vs. Sino Medical Sciences | Iat Automobile vs. Cofoe Medical Technology | Iat Automobile vs. Allmed Medical Products |
| Jiangsu Xinri vs. Shenzhen MYS Environmental | Jiangsu Xinri vs. AVIC Fund Management | Jiangsu Xinri vs. Shenzhen Bingchuan Network | Jiangsu Xinri vs. Penghua Shenzhen Energy |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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