Correlation Between Iat Automobile and Lutian Machinery
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By analyzing existing cross correlation between Iat Automobile Technology and Lutian Machinery Co, you can compare the effects of market volatilities on Iat Automobile and Lutian Machinery 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 Lutian Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Lutian Machinery.
Diversification Opportunities for Iat Automobile and Lutian Machinery
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Iat and Lutian is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Lutian Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lutian Machinery 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 Lutian Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lutian Machinery has no effect on the direction of Iat Automobile i.e., Iat Automobile and Lutian Machinery go up and down completely randomly.
Pair Corralation between Iat Automobile and Lutian Machinery
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.86 times more return on investment than Lutian Machinery. However, Iat Automobile is 1.86 times more volatile than Lutian Machinery Co. It trades about 0.01 of its potential returns per unit of risk. Lutian Machinery Co is currently generating about 0.0 per unit of risk. If you would invest 1,586 in Iat Automobile Technology on September 12, 2024 and sell it today you would lose (251.00) from holding Iat Automobile Technology or give up 15.83% 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. Lutian Machinery Co
Performance |
| Timeline |
| Iat Automobile Technology |
| Lutian Machinery |
Iat Automobile and Lutian Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Lutian Machinery
The main advantage of trading using opposite Iat Automobile and Lutian Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Lutian Machinery 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 Lutian Machinery will offset losses from the drop in Lutian Machinery's long position.| Iat Automobile vs. Lutian Machinery Co | Iat Automobile vs. PetroChina Co Ltd | Iat Automobile vs. Bank of China | Iat Automobile vs. Gansu Jiu Steel |
| Lutian Machinery vs. Agricultural Bank of | Lutian Machinery vs. Industrial and Commercial | Lutian Machinery vs. Bank of China | Lutian Machinery vs. PetroChina Co 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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