Correlation Between China International and Iat Automobile
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By analyzing existing cross correlation between China International Capital and Iat Automobile Technology, you can compare the effects of market volatilities on China International 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 China International with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of China International and Iat Automobile.
Diversification Opportunities for China International and Iat Automobile
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Iat is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding China International Capital 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 China International 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 China International Capital 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 China International i.e., China International and Iat Automobile go up and down completely randomly.
Pair Corralation between China International and Iat Automobile
Assuming the 90 days trading horizon China International is expected to generate 1.05 times less return on investment than Iat Automobile. But when comparing it to its historical volatility, China International Capital is 1.42 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 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,140 in Iat Automobile Technology on September 2, 2024 and sell it today you would earn a total of 90.00 from holding Iat Automobile Technology or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China International Capital vs. Iat Automobile Technology
Performance |
| Timeline |
| China International |
| Iat Automobile Technology |
China International and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China International and Iat Automobile
The main advantage of trading using opposite China International and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China International 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.| China International vs. UE Furniture Co | China International vs. CICC Fund Management | China International vs. Hunan Mendale Hometextile | China International vs. China Asset Management |
| Iat Automobile vs. Nancal Energy Saving Tech | Iat Automobile vs. Hainan Mining Co | Iat Automobile vs. Beijing HuaYuanYiTong Thermal | Iat Automobile vs. Ningbo Tech Bank 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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