Correlation Between Suzhou UIGreen and Iat Automobile
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By analyzing existing cross correlation between Suzhou UIGreen Micro and Iat Automobile Technology, you can compare the effects of market volatilities on Suzhou UIGreen 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 UIGreen with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou UIGreen and Iat Automobile.
Diversification Opportunities for Suzhou UIGreen and Iat Automobile
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suzhou and Iat is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou UIGreen Micro 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 UIGreen 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 UIGreen Micro 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 UIGreen i.e., Suzhou UIGreen and Iat Automobile go up and down completely randomly.
Pair Corralation between Suzhou UIGreen and Iat Automobile
Assuming the 90 days trading horizon Suzhou UIGreen Micro is expected to under-perform the Iat Automobile. In addition to that, Suzhou UIGreen is 1.17 times more volatile than Iat Automobile Technology. It trades about -0.34 of its total potential returns per unit of risk. Iat Automobile Technology is currently generating about -0.36 per unit of volatility. If you would invest 1,295 in Iat Automobile Technology on October 9, 2024 and sell it today you would lose (240.00) from holding Iat Automobile Technology or give up 18.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou UIGreen Micro vs. Iat Automobile Technology
Performance |
| Timeline |
| Suzhou UIGreen Micro |
| Iat Automobile Technology |
Suzhou UIGreen and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou UIGreen and Iat Automobile
The main advantage of trading using opposite Suzhou UIGreen and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou UIGreen 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 UIGreen vs. Weihai Honglin Electronic | Suzhou UIGreen vs. Guotai Epoint Software | Suzhou UIGreen vs. Linewell Software Co | Suzhou UIGreen vs. Ningbo Kangqiang Electronics |
| Iat Automobile vs. Linewell Software Co | Iat Automobile vs. Holitech Technology Co | Iat Automobile vs. Digiwin Software Co | Iat Automobile vs. Guilin Seamild Foods |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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