Correlation Between Suzhou Douson and Iat Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Suzhou Douson Drilling and Iat Automobile Technology, you can compare the effects of market volatilities on Suzhou Douson 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 Suzhou Douson with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Douson and Iat Automobile.
Diversification Opportunities for Suzhou Douson and Iat Automobile
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Iat is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Douson Drilling 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 Suzhou Douson 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 Suzhou Douson Drilling 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 Suzhou Douson i.e., Suzhou Douson and Iat Automobile go up and down completely randomly.
Pair Corralation between Suzhou Douson and Iat Automobile
Assuming the 90 days trading horizon Suzhou Douson is expected to generate 1.2 times less return on investment than Iat Automobile. In addition to that, Suzhou Douson is 1.01 times more volatile than Iat Automobile Technology. It trades about 0.18 of its total potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.21 per unit of volatility. If you would invest 1,042 in Iat Automobile Technology on August 25, 2024 and sell it today you would earn a total of 209.00 from holding Iat Automobile Technology or generate 20.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Suzhou Douson Drilling vs. Iat Automobile Technology
Performance |
| Timeline |
| Suzhou Douson Drilling |
| Iat Automobile Technology |
Suzhou Douson and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Douson and Iat Automobile
The main advantage of trading using opposite Suzhou Douson and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Douson 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.| Suzhou Douson vs. Guangzhou Jinyi Media | Suzhou Douson vs. Zhejiang Daily Media | Suzhou Douson vs. Qinghaihuading Industrial Co | Suzhou Douson vs. Chengtun Mining Group |
| Iat Automobile vs. Anhui Jianghuai Automobile | Iat Automobile vs. Tongyu Communication | Iat Automobile vs. CITIC Metal Co | Iat Automobile vs. Jiangxi Selon Industrial |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world |