Correlation Between Bank of China and Iat Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of China and Iat Automobile Technology, you can compare the effects of market volatilities on Bank of China 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 Bank of China with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Iat Automobile.
Diversification Opportunities for Bank of China and Iat Automobile
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Iat is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China 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 Bank of China 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 Bank of China 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 Bank of China i.e., Bank of China and Iat Automobile go up and down completely randomly.
Pair Corralation between Bank of China and Iat Automobile
Assuming the 90 days trading horizon Bank of China is expected to generate 0.32 times more return on investment than Iat Automobile. However, Bank of China is 3.15 times less risky than Iat Automobile. It trades about 0.08 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.0 per unit of risk. If you would invest 373.00 in Bank of China on September 12, 2024 and sell it today you would earn a total of 148.00 from holding Bank of China or generate 39.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Iat Automobile Technology
Performance |
| Timeline |
| Bank of China |
| Iat Automobile Technology |
Bank of China and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Iat Automobile
The main advantage of trading using opposite Bank of China and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China 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.| Bank of China vs. Chenzhou Jingui Silver | Bank of China vs. Hangzhou Pinming Software | Bank of China vs. Shandong Mining Machinery | Bank of China vs. Tibet Huayu Mining |
| Iat Automobile vs. Lutian Machinery Co | Iat Automobile vs. PetroChina Co Ltd | Iat Automobile vs. Bank of China | Iat Automobile vs. Gansu Jiu Steel |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |