Correlation Between Iat Automobile and Shanghai Action
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By analyzing existing cross correlation between Iat Automobile Technology and Shanghai Action Education, you can compare the effects of market volatilities on Iat Automobile and Shanghai Action 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 Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Shanghai Action.
Diversification Opportunities for Iat Automobile and Shanghai Action
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Iat and Shanghai is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education 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 Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Iat Automobile i.e., Iat Automobile and Shanghai Action go up and down completely randomly.
Pair Corralation between Iat Automobile and Shanghai Action
Assuming the 90 days trading horizon Iat Automobile Technology is expected to under-perform the Shanghai Action. In addition to that, Iat Automobile is 1.41 times more volatile than Shanghai Action Education. It trades about -0.16 of its total potential returns per unit of risk. Shanghai Action Education is currently generating about -0.11 per unit of volatility. If you would invest 3,711 in Shanghai Action Education on October 16, 2024 and sell it today you would lose (207.00) from holding Shanghai Action Education or give up 5.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Shanghai Action Education
Performance |
| Timeline |
| Iat Automobile Technology |
| Shanghai Action Education |
Iat Automobile and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Shanghai Action
The main advantage of trading using opposite Iat Automobile and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Shanghai Action 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 Shanghai Action will offset losses from the drop in Shanghai Action's long position.| Iat Automobile vs. Digiwin Software Co | Iat Automobile vs. Guangdong Xiongsu Technology | Iat Automobile vs. Ningbo Kangqiang Electronics | Iat Automobile vs. Hubei Forbon Technology |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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