Correlation Between ISoftStone Information and China Petroleum
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By analyzing existing cross correlation between iSoftStone Information Technology and China Petroleum Chemical, you can compare the effects of market volatilities on ISoftStone Information and China Petroleum 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 ISoftStone Information with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISoftStone Information and China Petroleum.
Diversification Opportunities for ISoftStone Information and China Petroleum
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between ISoftStone and China is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding iSoftStone Information Technol and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical and ISoftStone Information 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 iSoftStone Information Technology are associated (or correlated) with China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of ISoftStone Information i.e., ISoftStone Information and China Petroleum go up and down completely randomly.
Pair Corralation between ISoftStone Information and China Petroleum
Assuming the 90 days trading horizon iSoftStone Information Technology is expected to under-perform the China Petroleum. In addition to that, ISoftStone Information is 3.88 times more volatile than China Petroleum Chemical. It trades about -0.02 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.08 per unit of volatility. If you would invest 627.00 in China Petroleum Chemical on September 15, 2024 and sell it today you would earn a total of 9.00 from holding China Petroleum Chemical or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iSoftStone Information Technol vs. China Petroleum Chemical
Performance |
| Timeline |
| iSoftStone Information |
| China Petroleum Chemical |
ISoftStone Information and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISoftStone Information and China Petroleum
The main advantage of trading using opposite ISoftStone Information and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISoftStone Information position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.| ISoftStone Information vs. China Petroleum Chemical | ISoftStone Information vs. PetroChina Co Ltd | ISoftStone Information vs. China State Construction | ISoftStone Information vs. China Railway Group |
| China Petroleum vs. Guangzhou Dongfang Hotel | China Petroleum vs. Zhejiang Daily Media | China Petroleum vs. Duzhe Publishing Media | China Petroleum vs. Kingclean Electric Co |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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