Correlation Between Shanghai Broadband and Iat Automobile
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By analyzing existing cross correlation between Shanghai Broadband Technology and Iat Automobile Technology, you can compare the effects of market volatilities on Shanghai Broadband 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 Shanghai Broadband with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Iat Automobile.
Diversification Opportunities for Shanghai Broadband and Iat Automobile
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Iat is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband 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 Shanghai Broadband 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 Shanghai Broadband 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 Shanghai Broadband i.e., Shanghai Broadband and Iat Automobile go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Iat Automobile
Assuming the 90 days trading horizon Shanghai Broadband is expected to generate 1.7 times less return on investment than Iat Automobile. In addition to that, Shanghai Broadband is 1.09 times more volatile than Iat Automobile Technology. It trades about 0.12 of its total potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.23 per unit of volatility. If you would invest 1,100 in Iat Automobile Technology on December 11, 2024 and sell it today you would earn a total of 283.00 from holding Iat Automobile Technology or generate 25.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. Iat Automobile Technology
Performance |
| Timeline |
| Shanghai Broadband |
| Iat Automobile Technology |
Shanghai Broadband and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and Iat Automobile
The main advantage of trading using opposite Shanghai Broadband and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband 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.| Shanghai Broadband vs. Jiangsu Yanghe Brewery | Shanghai Broadband vs. Shanghai Action Education | Shanghai Broadband vs. Tsingtao Brewery Co | Shanghai Broadband vs. Duzhe Publishing Media |
| Iat Automobile vs. Thinkingdom Media Group | Iat Automobile vs. Xinhua Winshare Publishing | Iat Automobile vs. Duzhe Publishing Media | Iat Automobile vs. Jiangsu Phoenix Publishing |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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