Correlation Between Guangxi Wuzhou and ISoftStone Information
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and iSoftStone Information Technology, you can compare the effects of market volatilities on Guangxi Wuzhou 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 Guangxi Wuzhou with a short position of ISoftStone Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and ISoftStone Information.
Diversification Opportunities for Guangxi Wuzhou and ISoftStone Information
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangxi and ISoftStone is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and iSoftStone Information Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSoftStone Information and Guangxi Wuzhou 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 Guangxi Wuzhou Communications 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 Guangxi Wuzhou i.e., Guangxi Wuzhou and ISoftStone Information go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and ISoftStone Information
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 1.39 times more return on investment than ISoftStone Information. However, Guangxi Wuzhou is 1.39 times more volatile than iSoftStone Information Technology. It trades about -0.03 of its potential returns per unit of risk. iSoftStone Information Technology is currently generating about -0.09 per unit of risk. If you would invest 462.00 in Guangxi Wuzhou Communications on October 20, 2024 and sell it today you would lose (23.00) from holding Guangxi Wuzhou Communications or give up 4.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. iSoftStone Information Technol
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| iSoftStone Information |
Guangxi Wuzhou and ISoftStone Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and ISoftStone Information
The main advantage of trading using opposite Guangxi Wuzhou and ISoftStone Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou 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.| Guangxi Wuzhou vs. Western Metal Materials | Guangxi Wuzhou vs. China Minmetals Rare | Guangxi Wuzhou vs. Chengtun Mining Group | Guangxi Wuzhou vs. Tsingtao Brewery Co |
| ISoftStone Information vs. JiShi Media Co | ISoftStone Information vs. Bus Online Co | ISoftStone Information vs. Beijing Enlight Media | ISoftStone Information vs. Threes Company Media |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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