Correlation Between Sinomach Automobile and Iat Automobile
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By analyzing existing cross correlation between Sinomach Automobile Co and Iat Automobile Technology, you can compare the effects of market volatilities on Sinomach Automobile 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 Sinomach Automobile with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Iat Automobile.
Diversification Opportunities for Sinomach Automobile and Iat Automobile
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Iat is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile 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 Sinomach 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 Sinomach Automobile 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 Sinomach Automobile i.e., Sinomach Automobile and Iat Automobile go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Iat Automobile
Assuming the 90 days trading horizon Sinomach Automobile is expected to generate 102.22 times less return on investment than Iat Automobile. But when comparing it to its historical volatility, Sinomach Automobile Co is 1.48 times less risky than Iat Automobile. It trades about 0.0 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 961.00 in Iat Automobile Technology on August 28, 2024 and sell it today you would earn a total of 303.00 from holding Iat Automobile Technology or generate 31.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Iat Automobile Technology
Performance |
| Timeline |
| Sinomach Automobile |
| Iat Automobile Technology |
Sinomach Automobile and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Iat Automobile
The main advantage of trading using opposite Sinomach Automobile and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile 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.| Sinomach Automobile vs. Citic Guoan Wine | Sinomach Automobile vs. Milkyway Chemical Supply | Sinomach Automobile vs. Easyhome New Retail | Sinomach Automobile vs. Sunny Loan Top |
| Iat Automobile vs. Xian International Medical | Iat Automobile vs. Sino Medical Sciences | Iat Automobile vs. Cofoe Medical Technology | Iat Automobile vs. Allmed Medical Products |
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 Stocks Directory module to find actively traded stocks across global markets.
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