Correlation Between Lutian Machinery and Iat Automobile
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By analyzing existing cross correlation between Lutian Machinery Co and Iat Automobile Technology, you can compare the effects of market volatilities on Lutian Machinery 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 Lutian Machinery with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lutian Machinery and Iat Automobile.
Diversification Opportunities for Lutian Machinery and Iat Automobile
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lutian and Iat is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Lutian Machinery Co 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 Lutian Machinery 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 Lutian Machinery Co 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 Lutian Machinery i.e., Lutian Machinery and Iat Automobile go up and down completely randomly.
Pair Corralation between Lutian Machinery and Iat Automobile
Assuming the 90 days trading horizon Lutian Machinery Co is expected to under-perform the Iat Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Lutian Machinery Co is 1.85 times less risky than Iat Automobile. The stock trades about -0.01 of its potential returns per unit of risk. The Iat Automobile Technology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,726 in Iat Automobile Technology on September 12, 2024 and sell it today you would lose (391.00) from holding Iat Automobile Technology or give up 22.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lutian Machinery Co vs. Iat Automobile Technology
Performance |
| Timeline |
| Lutian Machinery |
| Iat Automobile Technology |
Lutian Machinery and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lutian Machinery and Iat Automobile
The main advantage of trading using opposite Lutian Machinery and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lutian Machinery 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.| Lutian Machinery vs. Agricultural Bank of | Lutian Machinery vs. Industrial and Commercial | Lutian Machinery vs. Bank of China | Lutian Machinery vs. PetroChina Co Ltd |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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