Correlation Between Piotech and Iat Automobile
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By analyzing existing cross correlation between Piotech Inc A and Iat Automobile Technology, you can compare the effects of market volatilities on Piotech 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 Piotech with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and Iat Automobile.
Diversification Opportunities for Piotech and Iat Automobile
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Piotech and Iat is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A 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 Piotech 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 Piotech Inc A 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 Piotech i.e., Piotech and Iat Automobile go up and down completely randomly.
Pair Corralation between Piotech and Iat Automobile
Assuming the 90 days trading horizon Piotech Inc A is expected to generate 1.11 times more return on investment than Iat Automobile. However, Piotech is 1.11 times more volatile than Iat Automobile Technology. It trades about 0.03 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.02 per unit of risk. If you would invest 13,846 in Piotech Inc A on September 26, 2024 and sell it today you would earn a total of 3,164 from holding Piotech Inc A or generate 22.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piotech Inc A vs. Iat Automobile Technology
Performance |
| Timeline |
| Piotech Inc A |
| Iat Automobile Technology |
Piotech and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piotech and Iat Automobile
The main advantage of trading using opposite Piotech and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech 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.| Piotech vs. Ping An Insurance | Piotech vs. Guangzhou KingTeller Technology | Piotech vs. Hefei Metalforming Mach | Piotech vs. Chongqing Shunbo Aluminum |
| Iat Automobile vs. China Life Insurance | Iat Automobile vs. Cinda Securities Co | Iat Automobile vs. Piotech Inc A | Iat Automobile vs. Dongxing Sec Co |
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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