Correlation Between Fujian Nanwang and ISoftStone Information
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Nanwang Environment and iSoftStone Information Technology, you can compare the effects of market volatilities on Fujian Nanwang and ISoftStone Information 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 Fujian Nanwang with a short position of ISoftStone Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and ISoftStone Information.
Diversification Opportunities for Fujian Nanwang and ISoftStone Information
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and ISoftStone is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment and iSoftStone Information Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSoftStone Information and Fujian Nanwang 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 Fujian Nanwang Environment are associated (or correlated) with ISoftStone Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSoftStone Information has no effect on the direction of Fujian Nanwang i.e., Fujian Nanwang and ISoftStone Information go up and down completely randomly.
Pair Corralation between Fujian Nanwang and ISoftStone Information
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to under-perform the ISoftStone Information. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Nanwang Environment is 1.89 times less risky than ISoftStone Information. The stock trades about -0.02 of its potential returns per unit of risk. The iSoftStone Information Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,708 in iSoftStone Information Technology on September 14, 2024 and sell it today you would earn a total of 1,787 from holding iSoftStone Information Technology or generate 37.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. iSoftStone Information Technol
Performance |
| Timeline |
| Fujian Nanwang Envir |
| iSoftStone Information |
Fujian Nanwang and ISoftStone Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and ISoftStone Information
The main advantage of trading using opposite Fujian Nanwang and ISoftStone Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang position performs unexpectedly, ISoftStone Information 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 ISoftStone Information will offset losses from the drop in ISoftStone Information's long position.| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Wanhua Chemical Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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