Correlation Between Shuhua Sports and Iat Automobile
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By analyzing existing cross correlation between Shuhua Sports Co and Iat Automobile Technology, you can compare the effects of market volatilities on Shuhua Sports 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 Shuhua Sports with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Iat Automobile.
Diversification Opportunities for Shuhua Sports and Iat Automobile
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shuhua and Iat is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports 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 Shuhua Sports 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 Shuhua Sports 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 Shuhua Sports i.e., Shuhua Sports and Iat Automobile go up and down completely randomly.
Pair Corralation between Shuhua Sports and Iat Automobile
Assuming the 90 days trading horizon Shuhua Sports is expected to generate 1.57 times less return on investment than Iat Automobile. But when comparing it to its historical volatility, Shuhua Sports Co is 1.75 times less risky than Iat Automobile. It trades about 0.16 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 897.00 in Iat Automobile Technology on September 3, 2024 and sell it today you would earn a total of 333.00 from holding Iat Automobile Technology or generate 37.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Iat Automobile Technology
Performance |
| Timeline |
| Shuhua Sports |
| Iat Automobile Technology |
Shuhua Sports and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Iat Automobile
The main advantage of trading using opposite Shuhua Sports and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports 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.| Shuhua Sports vs. PetroChina Co Ltd | Shuhua Sports vs. China Mobile Limited | Shuhua Sports vs. Industrial and Commercial | Shuhua Sports vs. China Life Insurance |
| Iat Automobile vs. PetroChina Co Ltd | Iat Automobile vs. China Mobile Limited | Iat Automobile vs. Industrial and Commercial | Iat Automobile vs. China Life Insurance |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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