Correlation Between Jiujiang Shanshui and Iat Automobile
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Iat Automobile Technology, you can compare the effects of market volatilities on Jiujiang Shanshui 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 Jiujiang Shanshui with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Iat Automobile.
Diversification Opportunities for Jiujiang Shanshui and Iat Automobile
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiujiang and Iat is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology 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 Jiujiang Shanshui 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 Jiujiang Shanshui Technology 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 Jiujiang Shanshui i.e., Jiujiang Shanshui and Iat Automobile go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Iat Automobile
Assuming the 90 days trading horizon Jiujiang Shanshui is expected to generate 5.71 times less return on investment than Iat Automobile. But when comparing it to its historical volatility, Jiujiang Shanshui Technology is 1.83 times less risky than Iat Automobile. It trades about 0.04 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,207 in Iat Automobile Technology on September 12, 2024 and sell it today you would earn a total of 128.00 from holding Iat Automobile Technology or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Iat Automobile Technology
Performance |
| Timeline |
| Jiujiang Shanshui |
| Iat Automobile Technology |
Jiujiang Shanshui and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Iat Automobile
The main advantage of trading using opposite Jiujiang Shanshui and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui 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.| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Wanhua Chemical Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Rongsheng Petrochemical Co |
| Iat Automobile vs. Lutian Machinery Co | Iat Automobile vs. PetroChina Co Ltd | Iat Automobile vs. Bank of China | Iat Automobile vs. Gansu Jiu Steel |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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