Correlation Between Anhui Gujing and ISoftStone Information
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By analyzing existing cross correlation between Anhui Gujing Distillery and iSoftStone Information Technology, you can compare the effects of market volatilities on Anhui Gujing and ISoftStone Information 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 Anhui Gujing with a short position of ISoftStone Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and ISoftStone Information.
Diversification Opportunities for Anhui Gujing and ISoftStone Information
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and ISoftStone is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and iSoftStone Information Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSoftStone Information and Anhui Gujing 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 Anhui Gujing Distillery are associated (or correlated) with ISoftStone Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSoftStone Information has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and ISoftStone Information go up and down completely randomly.
Pair Corralation between Anhui Gujing and ISoftStone Information
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to generate 0.47 times more return on investment than ISoftStone Information. However, Anhui Gujing Distillery is 2.15 times less risky than ISoftStone Information. It trades about -0.04 of its potential returns per unit of risk. iSoftStone Information Technology is currently generating about -0.09 per unit of risk. If you would invest 17,650 in Anhui Gujing Distillery on October 20, 2024 and sell it today you would lose (308.00) from holding Anhui Gujing Distillery or give up 1.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. iSoftStone Information Technol
Performance |
| Timeline |
| Anhui Gujing Distillery |
| iSoftStone Information |
Anhui Gujing and ISoftStone Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and ISoftStone Information
The main advantage of trading using opposite Anhui Gujing and ISoftStone Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, ISoftStone Information 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 ISoftStone Information will offset losses from the drop in ISoftStone Information's long position.| Anhui Gujing vs. Xiangyang Automobile Bearing | Anhui Gujing vs. Xinjiang Baodi Mining | Anhui Gujing vs. JCHX Mining Management | Anhui Gujing vs. Zijin Mining Group |
| ISoftStone Information vs. JiShi Media Co | ISoftStone Information vs. Bus Online Co | ISoftStone Information vs. Beijing Enlight Media | ISoftStone Information vs. Threes Company Media |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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