Correlation Between Anker Innovations and ISoftStone Information
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By analyzing existing cross correlation between Anker Innovations Technology and iSoftStone Information Technology, you can compare the effects of market volatilities on Anker Innovations 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 Anker Innovations with a short position of ISoftStone Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anker Innovations and ISoftStone Information.
Diversification Opportunities for Anker Innovations and ISoftStone Information
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Anker and ISoftStone is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Anker Innovations Technology and iSoftStone Information Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSoftStone Information and Anker Innovations 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 Anker Innovations Technology 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 Anker Innovations i.e., Anker Innovations and ISoftStone Information go up and down completely randomly.
Pair Corralation between Anker Innovations and ISoftStone Information
Assuming the 90 days trading horizon Anker Innovations Technology is expected to generate 0.7 times more return on investment than ISoftStone Information. However, Anker Innovations Technology is 1.42 times less risky than ISoftStone Information. It trades about 0.24 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 9,589 in Anker Innovations Technology on October 20, 2024 and sell it today you would earn a total of 1,126 from holding Anker Innovations Technology or generate 11.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Anker Innovations Technology vs. iSoftStone Information Technol
Performance |
| Timeline |
| Anker Innovations |
| iSoftStone Information |
Anker Innovations and ISoftStone Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anker Innovations and ISoftStone Information
The main advantage of trading using opposite Anker Innovations and ISoftStone Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anker Innovations 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.| Anker Innovations vs. Agricultural Bank of | Anker Innovations vs. Industrial and Commercial | Anker Innovations vs. Bank of China | Anker Innovations vs. China Construction Bank |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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