Correlation Between Beijing Enlight and ISoftStone Information
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By analyzing existing cross correlation between Beijing Enlight Media and iSoftStone Information Technology, you can compare the effects of market volatilities on Beijing Enlight 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 Beijing Enlight with a short position of ISoftStone Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Enlight and ISoftStone Information.
Diversification Opportunities for Beijing Enlight and ISoftStone Information
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Beijing and ISoftStone is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Enlight Media and iSoftStone Information Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSoftStone Information and Beijing Enlight 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 Beijing Enlight Media 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 Beijing Enlight i.e., Beijing Enlight and ISoftStone Information go up and down completely randomly.
Pair Corralation between Beijing Enlight and ISoftStone Information
Assuming the 90 days trading horizon Beijing Enlight Media is expected to generate 0.67 times more return on investment than ISoftStone Information. However, Beijing Enlight Media is 1.49 times less risky than ISoftStone Information. It trades about 0.07 of its potential returns per unit of risk. iSoftStone Information Technology is currently generating about -0.03 per unit of risk. If you would invest 929.00 in Beijing Enlight Media on November 2, 2024 and sell it today you would earn a total of 24.00 from holding Beijing Enlight Media or generate 2.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Enlight Media vs. iSoftStone Information Technol
Performance |
| Timeline |
| Beijing Enlight Media |
| iSoftStone Information |
Beijing Enlight and ISoftStone Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Enlight and ISoftStone Information
The main advantage of trading using opposite Beijing Enlight and ISoftStone Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Enlight 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.| Beijing Enlight vs. Jiangsu GDK Biotechnology | Beijing Enlight vs. SI TECH Information Technology | Beijing Enlight vs. Guangdong TianYiMa Information | Beijing Enlight vs. Changchun BCHT Biotechnology |
| ISoftStone Information vs. China State Construction | ISoftStone Information vs. Poly Real Estate | ISoftStone Information vs. China Vanke Co | ISoftStone Information vs. China Merchants Shekou |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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