Correlation Between Chahua Modern and Iat Automobile
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By analyzing existing cross correlation between Chahua Modern Housewares and Iat Automobile Technology, you can compare the effects of market volatilities on Chahua Modern 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 Chahua Modern with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Iat Automobile.
Diversification Opportunities for Chahua Modern and Iat Automobile
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chahua and Iat is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares 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 Chahua Modern 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 Chahua Modern Housewares 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 Chahua Modern i.e., Chahua Modern and Iat Automobile go up and down completely randomly.
Pair Corralation between Chahua Modern and Iat Automobile
Assuming the 90 days trading horizon Chahua Modern is expected to generate 11.48 times less return on investment than Iat Automobile. In addition to that, Chahua Modern is 1.09 times more volatile than Iat Automobile Technology. It trades about 0.01 of its total potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.14 per unit of volatility. If you would invest 1,207 in Iat Automobile Technology on September 12, 2024 and sell it today you would earn a total of 128.00 from holding Iat Automobile Technology or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chahua Modern Housewares vs. Iat Automobile Technology
Performance |
| Timeline |
| Chahua Modern Housewares |
| Iat Automobile Technology |
Chahua Modern and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Iat Automobile
The main advantage of trading using opposite Chahua Modern and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern 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.| Chahua Modern vs. Lutian Machinery Co | Chahua Modern vs. PetroChina Co Ltd | Chahua Modern vs. Bank of China | Chahua Modern vs. Gansu Jiu Steel |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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