Correlation Between Jiangsu Pacific and Iat Automobile
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By analyzing existing cross correlation between Jiangsu Pacific Quartz and Iat Automobile Technology, you can compare the effects of market volatilities on Jiangsu Pacific 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 Jiangsu Pacific with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Pacific and Iat Automobile.
Diversification Opportunities for Jiangsu Pacific and Iat Automobile
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Iat is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Pacific Quartz 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 Jiangsu Pacific 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 Jiangsu Pacific Quartz 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 Jiangsu Pacific i.e., Jiangsu Pacific and Iat Automobile go up and down completely randomly.
Pair Corralation between Jiangsu Pacific and Iat Automobile
Assuming the 90 days trading horizon Jiangsu Pacific Quartz is expected to under-perform the Iat Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Pacific Quartz is 1.12 times less risky than Iat Automobile. The stock trades about -0.09 of its potential returns per unit of risk. The Iat Automobile Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,293 in Iat Automobile Technology on October 29, 2024 and sell it today you would lose (143.00) from holding Iat Automobile Technology or give up 11.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Pacific Quartz vs. Iat Automobile Technology
Performance |
| Timeline |
| Jiangsu Pacific Quartz |
| Iat Automobile Technology |
Jiangsu Pacific and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Pacific and Iat Automobile
The main advantage of trading using opposite Jiangsu Pacific and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Pacific 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.| Jiangsu Pacific vs. Winner Medical Co | Jiangsu Pacific vs. Hengkang Medical Group | Jiangsu Pacific vs. Xiangyu Medical Co | Jiangsu Pacific vs. Eyebright Medical Technology |
| Iat Automobile vs. Puya Semiconductor Shanghai | Iat Automobile vs. Aluminum Corp of | Iat Automobile vs. StarPower Semiconductor | Iat Automobile vs. Shanghai Yanpu Metal |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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