Correlation Between ISoftStone Information and Liaoning Port
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By analyzing existing cross correlation between iSoftStone Information Technology and Liaoning Port Co, you can compare the effects of market volatilities on ISoftStone Information and Liaoning Port 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 Liaoning Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISoftStone Information and Liaoning Port.
Diversification Opportunities for ISoftStone Information and Liaoning Port
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ISoftStone and Liaoning is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding iSoftStone Information Technol and Liaoning Port Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Port 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 Liaoning Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Port has no effect on the direction of ISoftStone Information i.e., ISoftStone Information and Liaoning Port go up and down completely randomly.
Pair Corralation between ISoftStone Information and Liaoning Port
Assuming the 90 days trading horizon iSoftStone Information Technology is expected to generate 2.93 times more return on investment than Liaoning Port. However, ISoftStone Information is 2.93 times more volatile than Liaoning Port Co. It trades about 0.19 of its potential returns per unit of risk. Liaoning Port Co is currently generating about 0.18 per unit of risk. If you would invest 3,403 in iSoftStone Information Technology on August 30, 2024 and sell it today you would earn a total of 2,996 from holding iSoftStone Information Technology or generate 88.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iSoftStone Information Technol vs. Liaoning Port Co
Performance |
| Timeline |
| iSoftStone Information |
| Liaoning Port |
ISoftStone Information and Liaoning Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISoftStone Information and Liaoning Port
The main advantage of trading using opposite ISoftStone Information and Liaoning Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISoftStone Information position performs unexpectedly, Liaoning Port 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 Liaoning Port will offset losses from the drop in Liaoning Port's long position.| ISoftStone Information vs. Kweichow Moutai Co | ISoftStone Information vs. NAURA Technology Group | ISoftStone Information vs. APT Medical | ISoftStone Information vs. Contemporary Amperex Technology |
| Liaoning Port vs. Harbin Air Conditioning | Liaoning Port vs. Winner Medical Co | Liaoning Port vs. Fuzhou Rockchip Electronics | Liaoning Port vs. Shenzhen Glory Medical |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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