Correlation Between Shenzhen Transsion and Iat Automobile
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By analyzing existing cross correlation between Shenzhen Transsion Holdings and Iat Automobile Technology, you can compare the effects of market volatilities on Shenzhen Transsion 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 Shenzhen Transsion with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Transsion and Iat Automobile.
Diversification Opportunities for Shenzhen Transsion and Iat Automobile
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shenzhen and Iat is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Transsion Holdings 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 Shenzhen Transsion 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 Shenzhen Transsion Holdings 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 Shenzhen Transsion i.e., Shenzhen Transsion and Iat Automobile go up and down completely randomly.
Pair Corralation between Shenzhen Transsion and Iat Automobile
Assuming the 90 days trading horizon Shenzhen Transsion is expected to generate 1.18 times less return on investment than Iat Automobile. But when comparing it to its historical volatility, Shenzhen Transsion Holdings is 1.1 times less risky than Iat Automobile. It trades about 0.01 of its potential returns per unit of risk. 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Transsion Holdings vs. Iat Automobile Technology
Performance |
| Timeline |
| Shenzhen Transsion |
| Iat Automobile Technology |
Shenzhen Transsion and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Transsion and Iat Automobile
The main advantage of trading using opposite Shenzhen Transsion and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Transsion 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.| Shenzhen Transsion vs. Bus Online Co | Shenzhen Transsion vs. Holitech Technology Co | Shenzhen Transsion vs. Gome Telecom Equipment | Shenzhen Transsion vs. Cultural Investment Holdings |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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