Correlation Between Anhui Tongguan and Iat Automobile
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By analyzing existing cross correlation between Anhui Tongguan Copper and Iat Automobile Technology, you can compare the effects of market volatilities on Anhui Tongguan 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 Anhui Tongguan with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Tongguan and Iat Automobile.
Diversification Opportunities for Anhui Tongguan and Iat Automobile
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Iat is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Tongguan Copper 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 Anhui Tongguan 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 Anhui Tongguan Copper 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 Anhui Tongguan i.e., Anhui Tongguan and Iat Automobile go up and down completely randomly.
Pair Corralation between Anhui Tongguan and Iat Automobile
Assuming the 90 days trading horizon Anhui Tongguan Copper is expected to generate 1.16 times more return on investment than Iat Automobile. However, Anhui Tongguan is 1.16 times more volatile than Iat Automobile Technology. It trades about -0.03 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about -0.24 per unit of risk. If you would invest 1,111 in Anhui Tongguan Copper on October 11, 2024 and sell it today you would lose (45.00) from holding Anhui Tongguan Copper or give up 4.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Tongguan Copper vs. Iat Automobile Technology
Performance |
| Timeline |
| Anhui Tongguan Copper |
| Iat Automobile Technology |
Anhui Tongguan and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Tongguan and Iat Automobile
The main advantage of trading using opposite Anhui Tongguan and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Tongguan 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.| Anhui Tongguan vs. Ningbo Ligong Online | Anhui Tongguan vs. Integrated Electronic Systems | Anhui Tongguan vs. Beijing YanDong MicroElectronic | Anhui Tongguan vs. Guangzhou Jinyi Media |
| Iat Automobile vs. China Minmetals Rare | Iat Automobile vs. Top Choice Medical | Iat Automobile vs. Anhui Tongguan Copper | Iat Automobile vs. Xiangyu Medical Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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