Correlation Between ISoftStone Information and Shanghai Lingyun
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By analyzing existing cross correlation between iSoftStone Information Technology and Shanghai Lingyun Industries, you can compare the effects of market volatilities on ISoftStone Information and Shanghai Lingyun 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 Shanghai Lingyun. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISoftStone Information and Shanghai Lingyun.
Diversification Opportunities for ISoftStone Information and Shanghai Lingyun
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ISoftStone and Shanghai is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding iSoftStone Information Technol and Shanghai Lingyun Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Lingyun Ind 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 Shanghai Lingyun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Lingyun Ind has no effect on the direction of ISoftStone Information i.e., ISoftStone Information and Shanghai Lingyun go up and down completely randomly.
Pair Corralation between ISoftStone Information and Shanghai Lingyun
Assuming the 90 days trading horizon iSoftStone Information Technology is expected to generate 1.61 times more return on investment than Shanghai Lingyun. However, ISoftStone Information is 1.61 times more volatile than Shanghai Lingyun Industries. It trades about 0.1 of its potential returns per unit of risk. Shanghai Lingyun Industries is currently generating about 0.07 per unit of risk. If you would invest 5,152 in iSoftStone Information Technology on August 30, 2024 and sell it today you would earn a total of 1,127 from holding iSoftStone Information Technology or generate 21.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iSoftStone Information Technol vs. Shanghai Lingyun Industries
Performance |
| Timeline |
| iSoftStone Information |
| Shanghai Lingyun Ind |
ISoftStone Information and Shanghai Lingyun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISoftStone Information and Shanghai Lingyun
The main advantage of trading using opposite ISoftStone Information and Shanghai Lingyun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISoftStone Information position performs unexpectedly, Shanghai Lingyun 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 Shanghai Lingyun will offset losses from the drop in Shanghai Lingyun's long position.| ISoftStone Information vs. Agricultural Bank of | ISoftStone Information vs. Industrial and Commercial | ISoftStone Information vs. Bank of China | ISoftStone Information vs. PetroChina Co Ltd |
| Shanghai Lingyun vs. Sinosteel Engineering and | Shanghai Lingyun vs. Jiangxi JDL Environmental | Shanghai Lingyun vs. Guangdong Liantai Environmental | Shanghai Lingyun vs. Tianjin Capital Environmental |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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