Correlation Between Iat Automobile and Suzhou Novoprotein
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By analyzing existing cross correlation between Iat Automobile Technology and Suzhou Novoprotein Scientific, you can compare the effects of market volatilities on Iat Automobile and Suzhou Novoprotein 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 Novoprotein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Suzhou Novoprotein.
Diversification Opportunities for Iat Automobile and Suzhou Novoprotein
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iat and Suzhou is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Suzhou Novoprotein Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Novoprotein 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 Novoprotein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Novoprotein has no effect on the direction of Iat Automobile i.e., Iat Automobile and Suzhou Novoprotein go up and down completely randomly.
Pair Corralation between Iat Automobile and Suzhou Novoprotein
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.43 times more return on investment than Suzhou Novoprotein. However, Iat Automobile is 1.43 times more volatile than Suzhou Novoprotein Scientific. It trades about 0.16 of its potential returns per unit of risk. Suzhou Novoprotein Scientific is currently generating about 0.13 per unit of risk. If you would invest 889.00 in Iat Automobile Technology on September 4, 2024 and sell it today you would earn a total of 382.00 from holding Iat Automobile Technology or generate 42.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iat Automobile Technology vs. Suzhou Novoprotein Scientific
Performance |
| Timeline |
| Iat Automobile Technology |
| Suzhou Novoprotein |
Iat Automobile and Suzhou Novoprotein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iat Automobile and Suzhou Novoprotein
The main advantage of trading using opposite Iat Automobile and Suzhou Novoprotein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Suzhou Novoprotein 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 Novoprotein will offset losses from the drop in Suzhou Novoprotein's long position.| Iat Automobile vs. Cultural Investment Holdings | Iat Automobile vs. Gome Telecom Equipment | Iat Automobile vs. Bus Online Co | Iat Automobile vs. Holitech Technology Co |
| Suzhou Novoprotein vs. Iat Automobile Technology | Suzhou Novoprotein vs. Dongfeng Automobile Co | Suzhou Novoprotein vs. Dawning Information Industry | Suzhou Novoprotein vs. CITIC Guoan Information |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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