Correlation Between Iat Automobile and Sunwoda Electronic
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By analyzing existing cross correlation between Iat Automobile Technology and Sunwoda Electronic, you can compare the effects of market volatilities on Iat Automobile and Sunwoda Electronic 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 Sunwoda Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iat Automobile and Sunwoda Electronic.
Diversification Opportunities for Iat Automobile and Sunwoda Electronic
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iat and Sunwoda is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Iat Automobile Technology and Sunwoda Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwoda Electronic 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 Sunwoda Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunwoda Electronic has no effect on the direction of Iat Automobile i.e., Iat Automobile and Sunwoda Electronic go up and down completely randomly.
Pair Corralation between Iat Automobile and Sunwoda Electronic
Assuming the 90 days trading horizon Iat Automobile Technology is expected to under-perform the Sunwoda Electronic. In addition to that, Iat Automobile is 1.8 times more volatile than Sunwoda Electronic. It trades about -0.08 of its total potential returns per unit of risk. Sunwoda Electronic is currently generating about -0.02 per unit of volatility. If you would invest 2,327 in Sunwoda Electronic on September 25, 2024 and sell it today you would lose (27.00) from holding Sunwoda Electronic or give up 1.16% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Iat Automobile Technology vs. Sunwoda Electronic
Performance |
Timeline |
Iat Automobile Technology |
Sunwoda Electronic |
Iat Automobile and Sunwoda Electronic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Iat Automobile and Sunwoda Electronic
The main advantage of trading using opposite Iat Automobile and Sunwoda Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iat Automobile position performs unexpectedly, Sunwoda Electronic 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 Sunwoda Electronic will offset losses from the drop in Sunwoda Electronic's long position.Iat Automobile vs. China Life Insurance | Iat Automobile vs. Cinda Securities Co | Iat Automobile vs. Piotech Inc A | Iat Automobile vs. Dongxing Sec Co |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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