Correlation Between Puya Semiconductor and Iat Automobile
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By analyzing existing cross correlation between Puya Semiconductor Shanghai and Iat Automobile Technology, you can compare the effects of market volatilities on Puya Semiconductor 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 Puya Semiconductor with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puya Semiconductor and Iat Automobile.
Diversification Opportunities for Puya Semiconductor and Iat Automobile
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Puya and Iat is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Puya Semiconductor Shanghai 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 Puya Semiconductor 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 Puya Semiconductor Shanghai 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 Puya Semiconductor i.e., Puya Semiconductor and Iat Automobile go up and down completely randomly.
Pair Corralation between Puya Semiconductor and Iat Automobile
Assuming the 90 days trading horizon Puya Semiconductor Shanghai is expected to generate 1.51 times more return on investment than Iat Automobile. However, Puya Semiconductor is 1.51 times more volatile than Iat Automobile Technology. It trades about 0.1 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.01 per unit of risk. If you would invest 8,637 in Puya Semiconductor Shanghai on November 7, 2024 and sell it today you would earn a total of 2,192 from holding Puya Semiconductor Shanghai or generate 25.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puya Semiconductor Shanghai vs. Iat Automobile Technology
Performance |
| Timeline |
| Puya Semiconductor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Iat Automobile Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Puya Semiconductor and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puya Semiconductor and Iat Automobile
The main advantage of trading using opposite Puya Semiconductor and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puya Semiconductor 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.The idea behind Puya Semiconductor Shanghai and Iat Automobile Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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