Correlation Between Zhongzhu Medical and Iat Automobile
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By analyzing existing cross correlation between Zhongzhu Medical Holdings and Iat Automobile Technology, you can compare the effects of market volatilities on Zhongzhu Medical 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 Zhongzhu Medical with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongzhu Medical and Iat Automobile.
Diversification Opportunities for Zhongzhu Medical and Iat Automobile
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongzhu and Iat is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Zhongzhu Medical Holdings 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 Zhongzhu Medical 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 Zhongzhu Medical Holdings 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 Zhongzhu Medical i.e., Zhongzhu Medical and Iat Automobile go up and down completely randomly.
Pair Corralation between Zhongzhu Medical and Iat Automobile
Assuming the 90 days trading horizon Zhongzhu Medical Holdings is expected to under-perform the Iat Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Zhongzhu Medical Holdings is 1.83 times less risky than Iat Automobile. The stock trades about -0.03 of its potential returns per unit of risk. The Iat Automobile Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,273 in Iat Automobile Technology on October 31, 2024 and sell it today you would lose (100.00) from holding Iat Automobile Technology or give up 7.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongzhu Medical Holdings vs. Iat Automobile Technology
Performance |
| Timeline |
| Zhongzhu Medical Holdings |
| Iat Automobile Technology |
Zhongzhu Medical and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongzhu Medical and Iat Automobile
The main advantage of trading using opposite Zhongzhu Medical and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongzhu Medical 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.| Zhongzhu Medical vs. CICT Mobile Communication | Zhongzhu Medical vs. Wuhan Yangtze Communication | Zhongzhu Medical vs. Guangzhou Haige Communications | Zhongzhu Medical vs. China Sports Industry |
| Iat Automobile vs. Sino Platinum Metals Co | Iat Automobile vs. Miracll Chemicals Co | Iat Automobile vs. Lier Chemical Co | Iat Automobile vs. Hefei Metalforming Mach |
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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