Correlation Between Dongxing Sec and Iat Automobile
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By analyzing existing cross correlation between Dongxing Sec Co and Iat Automobile Technology, you can compare the effects of market volatilities on Dongxing Sec 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 Dongxing Sec with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Iat Automobile.
Diversification Opportunities for Dongxing Sec and Iat Automobile
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongxing and Iat is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec i.e., Dongxing Sec and Iat Automobile go up and down completely randomly.
Pair Corralation between Dongxing Sec and Iat Automobile
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 0.56 times more return on investment than Iat Automobile. However, Dongxing Sec Co is 1.79 times less risky than Iat Automobile. It trades about 0.05 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.02 per unit of risk. If you would invest 784.00 in Dongxing Sec Co on September 26, 2024 and sell it today you would earn a total of 360.00 from holding Dongxing Sec Co or generate 45.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Iat Automobile Technology
Performance |
| Timeline |
| Dongxing Sec |
| Iat Automobile Technology |
Dongxing Sec and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Iat Automobile
The main advantage of trading using opposite Dongxing Sec and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec 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.| Dongxing Sec vs. Kweichow Moutai Co | Dongxing Sec vs. Contemporary Amperex Technology | Dongxing Sec vs. G bits Network Technology | Dongxing Sec vs. BYD Co Ltd |
| Iat Automobile vs. China Life Insurance | Iat Automobile vs. Cinda Securities Co | Iat Automobile vs. Piotech Inc A | Iat Automobile vs. Dongxing Sec 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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