Correlation Between Iat Automobile and Suzhou Douson
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By analyzing existing cross correlation between Iat Automobile Technology and Suzhou Douson Drilling, you can compare the effects of market volatilities on Iat Automobile and Suzhou Douson 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 Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Suzhou Douson.
Diversification Opportunities for Iat Automobile and Suzhou Douson
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Iat and Suzhou is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Suzhou Douson Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Douson Drilling 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 Suzhou Douson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Douson Drilling has no effect on the direction of Iat Automobile i.e., Iat Automobile and Suzhou Douson go up and down completely randomly.
Pair Corralation between Iat Automobile and Suzhou Douson
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.22 times more return on investment than Suzhou Douson. However, Iat Automobile is 1.22 times more volatile than Suzhou Douson Drilling. It trades about 0.02 of its potential returns per unit of risk. Suzhou Douson Drilling is currently generating about -0.01 per unit of risk. If you would invest 1,282 in Iat Automobile Technology on August 25, 2024 and sell it today you would lose (31.00) from holding Iat Automobile Technology or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Suzhou Douson Drilling
Performance |
| Timeline |
| Iat Automobile Technology |
| Suzhou Douson Drilling |
Iat Automobile and Suzhou Douson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Suzhou Douson
The main advantage of trading using opposite Iat Automobile and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Suzhou Douson 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 Suzhou Douson will offset losses from the drop in Suzhou Douson's long position.| Iat Automobile vs. Anhui Jianghuai Automobile | Iat Automobile vs. Tongyu Communication | Iat Automobile vs. CITIC Metal Co | Iat Automobile vs. Jiangxi Selon Industrial |
| Suzhou Douson vs. Guangzhou Jinyi Media | Suzhou Douson vs. Zhejiang Daily Media | Suzhou Douson vs. Qinghaihuading Industrial Co | Suzhou Douson vs. Chengtun Mining Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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