Correlation Between Guangdong Cellwise and Iat Automobile
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By analyzing existing cross correlation between Guangdong Cellwise Microelectronics and Iat Automobile Technology, you can compare the effects of market volatilities on Guangdong Cellwise 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 Guangdong Cellwise with a short position of Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Cellwise and Iat Automobile.
Diversification Opportunities for Guangdong Cellwise and Iat Automobile
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Iat is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Cellwise Microelectr 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 Guangdong Cellwise 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 Guangdong Cellwise Microelectronics 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 Guangdong Cellwise i.e., Guangdong Cellwise and Iat Automobile go up and down completely randomly.
Pair Corralation between Guangdong Cellwise and Iat Automobile
Assuming the 90 days trading horizon Guangdong Cellwise Microelectronics is expected to generate 1.24 times more return on investment than Iat Automobile. However, Guangdong Cellwise is 1.24 times more volatile than Iat Automobile Technology. It trades about 0.2 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.16 per unit of risk. If you would invest 2,980 in Guangdong Cellwise Microelectronics on September 23, 2024 and sell it today you would earn a total of 2,391 from holding Guangdong Cellwise Microelectronics or generate 80.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Cellwise Microelectr vs. Iat Automobile Technology
Performance |
Timeline |
Guangdong Cellwise |
Iat Automobile Technology |
Guangdong Cellwise and Iat Automobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Cellwise and Iat Automobile
The main advantage of trading using opposite Guangdong Cellwise and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Cellwise 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.Guangdong Cellwise vs. Tongyu Communication | Guangdong Cellwise vs. Zhongtong Guomai Communication | Guangdong Cellwise vs. Runjian Communication Co | Guangdong Cellwise vs. Songz Automobile Air |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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