Correlation Between Iat Automobile and Gotion High
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By analyzing existing cross correlation between Iat Automobile Technology and Gotion High tech, you can compare the effects of market volatilities on Iat Automobile and Gotion High 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 Iat Automobile with a short position of Gotion High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Gotion High.
Diversification Opportunities for Iat Automobile and Gotion High
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iat and Gotion is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Gotion High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gotion High tech and Iat Automobile 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 Iat Automobile Technology are associated (or correlated) with Gotion High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gotion High tech has no effect on the direction of Iat Automobile i.e., Iat Automobile and Gotion High go up and down completely randomly.
Pair Corralation between Iat Automobile and Gotion High
Assuming the 90 days trading horizon Iat Automobile Technology is expected to generate 1.31 times more return on investment than Gotion High. However, Iat Automobile is 1.31 times more volatile than Gotion High tech. It trades about 0.16 of its potential returns per unit of risk. Gotion High tech is currently generating about 0.11 per unit of risk. If you would invest 837.00 in Iat Automobile Technology on September 23, 2024 and sell it today you would earn a total of 376.00 from holding Iat Automobile Technology or generate 44.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Iat Automobile Technology vs. Gotion High tech
Performance |
Timeline |
Iat Automobile Technology |
Gotion High tech |
Iat Automobile and Gotion High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Iat Automobile and Gotion High
The main advantage of trading using opposite Iat Automobile and Gotion High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Gotion High 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 Gotion High will offset losses from the drop in Gotion High's long position.Iat Automobile vs. China Sports Industry | Iat Automobile vs. Kunshan Guoli Electronic | Iat Automobile vs. Puyang Huicheng Electronic | Iat Automobile vs. Integrated Electronic Systems |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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