Correlation Between ISoftStone Information and Jiangsu Seagull
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By analyzing existing cross correlation between iSoftStone Information Technology and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on ISoftStone Information and Jiangsu Seagull 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 Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISoftStone Information and Jiangsu Seagull.
Diversification Opportunities for ISoftStone Information and Jiangsu Seagull
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ISoftStone and Jiangsu is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding iSoftStone Information Technol and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling 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 Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of ISoftStone Information i.e., ISoftStone Information and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between ISoftStone Information and Jiangsu Seagull
Assuming the 90 days trading horizon iSoftStone Information Technology is expected to generate 1.21 times more return on investment than Jiangsu Seagull. However, ISoftStone Information is 1.21 times more volatile than Jiangsu Seagull Cooling. It trades about 0.05 of its potential returns per unit of risk. Jiangsu Seagull Cooling is currently generating about 0.03 per unit of risk. If you would invest 3,065 in iSoftStone Information Technology on October 29, 2024 and sell it today you would earn a total of 2,556 from holding iSoftStone Information Technology or generate 83.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iSoftStone Information Technol vs. Jiangsu Seagull Cooling
Performance |
| Timeline |
| iSoftStone Information |
| Jiangsu Seagull Cooling |
ISoftStone Information and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISoftStone Information and Jiangsu Seagull
The main advantage of trading using opposite ISoftStone Information and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISoftStone Information position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull's long position.| ISoftStone Information vs. China State Construction | ISoftStone Information vs. Poly Real Estate | ISoftStone Information vs. China Vanke Co | ISoftStone Information vs. China Merchants Shekou |
| Jiangsu Seagull vs. China Asset Management | Jiangsu Seagull vs. Success Electronics | Jiangsu Seagull vs. Zhonghang Electronic Measuring | Jiangsu Seagull vs. TongFu Microelectronics 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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