Correlation Between Iat Automobile and Guangzhou Fangbang
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By analyzing existing cross correlation between Iat Automobile Technology and Guangzhou Fangbang Electronics, you can compare the effects of market volatilities on Iat Automobile and Guangzhou Fangbang 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 Guangzhou Fangbang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Guangzhou Fangbang.
Diversification Opportunities for Iat Automobile and Guangzhou Fangbang
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and Guangzhou is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Guangzhou Fangbang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Fangbang 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 Guangzhou Fangbang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Fangbang has no effect on the direction of Iat Automobile i.e., Iat Automobile and Guangzhou Fangbang go up and down completely randomly.
Pair Corralation between Iat Automobile and Guangzhou Fangbang
Assuming the 90 days trading horizon Iat Automobile Technology is expected to under-perform the Guangzhou Fangbang. In addition to that, Iat Automobile is 1.57 times more volatile than Guangzhou Fangbang Electronics. It trades about -0.05 of its total potential returns per unit of risk. Guangzhou Fangbang Electronics is currently generating about 0.02 per unit of volatility. If you would invest 3,640 in Guangzhou Fangbang Electronics on September 27, 2024 and sell it today you would earn a total of 14.00 from holding Guangzhou Fangbang Electronics or generate 0.38% 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. Guangzhou Fangbang Electronics
Performance |
| Timeline |
| Iat Automobile Technology |
| Guangzhou Fangbang |
Iat Automobile and Guangzhou Fangbang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Guangzhou Fangbang
The main advantage of trading using opposite Iat Automobile and Guangzhou Fangbang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Guangzhou Fangbang 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 Guangzhou Fangbang will offset losses from the drop in Guangzhou Fangbang'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 |
| Guangzhou Fangbang vs. Industrial and Commercial | Guangzhou Fangbang vs. China Construction Bank | Guangzhou Fangbang vs. Agricultural Bank of | Guangzhou Fangbang vs. Bank of China |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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