Correlation Between ISoftStone Information and JCHX Mining
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By analyzing existing cross correlation between iSoftStone Information Technology and JCHX Mining Management, you can compare the effects of market volatilities on ISoftStone Information and JCHX Mining 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 JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISoftStone Information and JCHX Mining.
Diversification Opportunities for ISoftStone Information and JCHX Mining
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ISoftStone and JCHX is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding iSoftStone Information Technol and JCHX Mining Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCHX Mining Management 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 JCHX Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCHX Mining Management has no effect on the direction of ISoftStone Information i.e., ISoftStone Information and JCHX Mining go up and down completely randomly.
Pair Corralation between ISoftStone Information and JCHX Mining
Assuming the 90 days trading horizon iSoftStone Information Technology is expected to generate 2.08 times more return on investment than JCHX Mining. However, ISoftStone Information is 2.08 times more volatile than JCHX Mining Management. It trades about 0.07 of its potential returns per unit of risk. JCHX Mining Management is currently generating about 0.06 per unit of risk. If you would invest 2,292 in iSoftStone Information Technology on September 13, 2024 and sell it today you would earn a total of 4,192 from holding iSoftStone Information Technology or generate 182.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iSoftStone Information Technol vs. JCHX Mining Management
Performance |
| Timeline |
| iSoftStone Information |
| JCHX Mining Management |
ISoftStone Information and JCHX Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISoftStone Information and JCHX Mining
The main advantage of trading using opposite ISoftStone Information and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISoftStone Information position performs unexpectedly, JCHX Mining 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 JCHX Mining will offset losses from the drop in JCHX Mining's long position.| ISoftStone Information vs. JCHX Mining Management | ISoftStone Information vs. Sinomach Automobile Co | ISoftStone Information vs. Chengtun Mining Group | ISoftStone Information vs. Zhengzhou Coal Mining |
| JCHX Mining vs. Zijin Mining Group | JCHX Mining vs. Wanhua Chemical Group | JCHX Mining vs. Baoshan Iron Steel | JCHX Mining vs. Shandong Gold Mining |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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