Correlation Between CIMC Vehicles and Iat Automobile
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By analyzing existing cross correlation between CIMC Vehicles Co and Iat Automobile Technology, you can compare the effects of market volatilities on CIMC Vehicles and Iat Automobile 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 CIMC Vehicles with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Iat Automobile.
Diversification Opportunities for CIMC Vehicles and Iat Automobile
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CIMC and Iat is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile Technology and CIMC Vehicles 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 CIMC Vehicles Co are associated (or correlated) with Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of CIMC Vehicles i.e., CIMC Vehicles and Iat Automobile go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Iat Automobile
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to generate 0.51 times more return on investment than Iat Automobile. However, CIMC Vehicles Co is 1.96 times less risky than Iat Automobile. It trades about -0.01 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about -0.02 per unit of risk. If you would invest 990.00 in CIMC Vehicles Co on August 31, 2024 and sell it today you would lose (10.00) from holding CIMC Vehicles Co or give up 1.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIMC Vehicles Co vs. Iat Automobile Technology
Performance |
| Timeline |
| CIMC Vehicles |
| Iat Automobile Technology |
CIMC Vehicles and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and Iat Automobile
The main advantage of trading using opposite CIMC Vehicles and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles position performs unexpectedly, Iat Automobile 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 Iat Automobile will offset losses from the drop in Iat Automobile's long position.| CIMC Vehicles vs. Lander Sports Development | CIMC Vehicles vs. Caihong Display Devices | CIMC Vehicles vs. Everdisplay Optronics Shanghai | CIMC Vehicles vs. Olympic Circuit Technology |
| Iat Automobile vs. China State Construction | Iat Automobile vs. China Merchants Shekou | Iat Automobile vs. Huafa Industrial Co | Iat Automobile vs. China International Capital |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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